The CFTC Report- Euro Net Short Climbs

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 15th of July displayed that investor’s bias continues to move mainly against the US dollar. As we can see at the CFTC Sentiment table the Japanese Yen, theSwiss franc and the Euro maintained the bearish position against the US dollar while investors on the rest of the major currencies displayed on the table hold a long position. Moreover, the Euro bearish sentiment refreshed as the weekly change was the largest bearish with the net short position increasing by $0.57 billion against the US dollar. Investors also reduced their net long positions on the British pound with the weekly change standing at $-0.30 billion. The GBPUSD found a key resistance at 1.7179 and extended in sideways trading in the respective week.

The Euro has the highest net short and at the same time has the largest weekly bearish change as we can see at the Weekly Change of Net L/S bar chart. On the other side, the largest weekly positive change is at the Canadian dollar trading which strengthened its net long position to $1.45 billion. Despite the bounce up of the USDCAD to cap at 1.0791, investors continue to build their long positions with the Canadian dollar in anticipation of the revival of the downward trend in the USDCAD pattern.

Furthermore, the Australian dollar is strengthening as the net long is standing now at $3.72 billion and the weekly change has been positive as well. Price pattern is bullish for the AUDUSD and that is reflected on the Aussie market sentiment. Risk appetite was strengthening as the US stock indices were rising to fresh highs which underpinned the demand for Australian dollar. However geopolitical risk rose significantly after the 15th of July and that could limit upside sentiment on the Aussie trading. The Aussie now holds the largest Long/Short ratio and is second in terms of Net Long positions size.