The CFTC Report- US Dollar Bullish Sentiment Returns

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 19th of August showed that investors refreshed their bullish sentiment towards the US dollar. The US dollar according to the CFTC Sentiment table strengthened against the Euro, the British pound the Canadian and the Japanese Yen.

More specifically, we can see at the CFTC Sentiment table that the net short position on the Euro it remains the highest among major currencies at $-23.10 billion and has increased in the concerning week by $2.05 billion. That is one of the largest net bearish positions since July 2012. Moreover, the Euro bearish momentum appears sustainable despite that has been at extreme negative levels in the last weeks. In addition, the Japanese Yen has the second largest net short position at $10.59 billion which further increased in the week ended on the 19th of August. The Canadian dollar despite its net long position standing at $0.66 billion, bearish moderation took place this week like in the previous two weeks, decreasing by $0.98 billion its net long position.

Elsewhere, the Australian dollar increased its net long position to $3.40 billion as the geopolitical risk eased and investors were seeking for riskier currencies. Lastly, the British pound narrowed its net long position as we can see at the CFTC Sentiment Table and the Weekly Change. Sterling bearish sentiment refreshed after the previous week bullish recovery. That suggests bearish sentiment persists and we would expect to see further shrink of the net long.