These are the main takeaways of the CFTC Positioning Report for the week ending October 8.
- Non-Commercial traders held net shorts in the US Dollar for the first time since April at nearly 2K contracts amidst a slight retracement in open interest. During this period, the US Dollar Index (DXY) continued its recovery from lows around the key 100.00 level, pushing well beyond the 102.00 threshold. This rebound was driven by diminishing expectations of a 50 bps rate cut in November, alongside data and Fedspeak supporting a soft landing for the US economy.
- Speculators trimmed their net longs in the Japanese yen to six-week lows around the 36.5K contracts, while hedge funds and other commercial players also reduced their net shorts to multi-week lows, all amidst a marginal increase in open interest. The resurgence of a firm selling pressure around the Yen motivated USD/JPY to advance to new two-month peaks past the 149.00 hurdle.
- Speculative net longs in the Euro shrank to eight-week lows around 39K contracts, while commercial players sent their net shorts to levels last seen in late July. Open interest, in the meantime, contracted for the second week in a row. EUR/USD embarked on a corrective decline, which broke below the key support at 1.1000, almost exclusively on the back of the resumption of Dollar’s strength.
- Net longs in the British pound dropped slightly from the previous week, along with a small decline in open interest. In line with the rest of the broad risk complex, GBP/USD edged lower, accelerating its corrective move after hitting yearly peaks north of 1.3400 the figure in late September. In addition, dovish remarks from the BoE’s Bailey also collaborated with the retracement.
- Non-Commercial net longs in Gold deflated to levels last seen in mid-August around 278K contracts amidst a marked reduction of gross longs, while open interest retreated modestly for the second straight week. Gold prices have made several attempts to consolidate near their record highs, consistently supported by the $2,600 mark per ounce troy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD gathers fresh upside traction and approaches 1.0580
Following an early dip to a new 2024 low at 1.0495, EUR/USD manages to regain some balance and retests the area of daily peaks near 1.0580 as the US Dollar's initial uptick seems to have run out of steam.
GBP/USD reclaims the 1.2700 barrier and above
In line with the rest of its risk-related peers, GBP/USD leaves behind the initial drop to multi-month lows near 1.2630 and attempts a move beyond 1.2700 the figure amidst renewed weakness in the Greenback.
Gold trims early losses hovers around $2,575
The loss of momentum in the US Dollar and the retracement in US yields across the curve allow Gold prices to pick up some upside traction and revisit the $2,570 zone per ounce troy, trimming part of their early losses.
Missing crypto influencer Kevin Mirshahi found dead in Montreal Park
Authorities report that the remains of Kevin Mirshahi, a prominent crypto influencer who was abducted in June, have been found in a Montreal park. Local police informed “The Gazette” that a passerby found the grim discovery on October 30 in Île-de-la-Visitation Park.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.