Net long USD positions remained firm

These are the main strengths of the CFTC positioning report for the week ended September 14e:

  • Bullish speculative bets in the dollar increased for the fourth week in a row and has now reached levels last seen in late February 2020, on the brink of the coronavirus pandemic. In addition, the ratio of net long positions to open interest approached the level of 55%, last seen in mid-May 2020. The US Dollar Index (DXY) traded amid a consolidation mood during the week under surveillance, as market participants digested the last paychecks. numbers, while Fed speakers insisted on a faster-than-expected reduction in QE and US yields corrected down from highs.
  • Long net in the EUR reached 4-week highs and the percentage of net open interest buyers also reached multi-week highs (above 4%), all despite the accommodating “recalibration” of the ECB at its meeting on the 9th. September, as well as an improvement in inflation and growth projections for the next two years. EUR / USD, however, fell further from monthly highs and circled around the 1.1800 mark, which will eventually break in subsequent sessions.
  • Looking at the refuge universe, JPY net short selling hit their lowest level since early August, as speculators shifted to the downside on CHF for the first time since May 25.
  • After three weeks of sailing in negative territory, the positioning of the GBP turned positive. Cable managed to rebound from lows around 1.3730 supported by market chatter surrounding a possible change in tone from the BoE at its next meeting. The EU-UK front coupled with Delta concerns continued to limit any serious bullish attempts by the pair.
  • In the commodities galaxy, net purchases in the WTI and gold reached two-week highs.
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