These are the main highlights of the CFTC Positioning Report for the week ending August 20.
- Non-commercial players (speculators) maintained their net-long positions in the Japanese yen for the second consecutive week, amidst a slight uptick in open interest. During that period, USD/JPY rapidly faded the climb to weekly highs in the mid-149.00s, refocusing once again on the downtrend.
- Net longs in the US Dollar dropped to two-week lows against the backdrop of rising open interest. The US Dollar Index (DXY) kicked off what will eventually be a steep retracement to yearly lows as investors started to price in the likelihood of more and maybe deeper interest rate cuts by the Fed.
- Net long positions in EUR increased to levels last seen in early June, indicating a persistent bullish sentiment among speculators. Commercial traders (hedge funds) remained net shorts, with contracts climbing to multi-week highs. EUR/USD started a strong rebound, convincingly leaving behind the psychological 1.1000 barrier to print new tops for the year, always on the back of the renewed and marked pullback in the Greenback.
- Net longs in the British pound regained some momentum and rose to three-week highs, pari passu the equally robust uptrend in GBP/USD, which broke above the key 1.3000 milestone with certain conviction to hit fresh 13-month peaks.
- Non-commercial traders reduced their net longs in the Australian Dollar to three-week lows, on the back of the broad-based hawkish stance in the RBA and further retracements in the US Dollar. AUD/USD flirted with two-month highs just pips away from 0.6800 the figure.
- Gold prices maintained their upside bias well in place, reaching all-time peaks past the $2,500 mark per ounce troy amidst a move to multi-year tops in net longs. Further gains in the precious metal came on the back of firmer expectations of interest rate cuts by the Fed as well as unabated geopolitical tensions, both in the Middle East and on the Russia-Ukraine front.
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