The CFTC Report- Euro Net Short at Record Low for 2014
The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 17th of June showed that investor’s bias is moving mainly against the Euro. As we can see at the CFTC Sentiment table the Euro increased its net short position by $0.787 billion against the US dollar. Investors maintained their downside bias on Euro after ECB decided to cut rates. The US dollar in general moderated its net long against its major peers except with the Euro and the Australian dollar. The British pound was bullish and increased that week its net positive position by $1.82 billion. The latter was due to speculattion that the Bank of England will increase key rate sooner than expected.
Furthermore, the net position on the Japanese Yen is not anymore the largest negative, it was overpassed by the net short on Euro standing at minus $10.47. The Yen net short position moderated by $1.69 billion on the week ended on 17th of June and is now at minus $8.34 billion. Moreover, this is the first positive week for the Yen after three negative weeks in a row. Risk averse on Iraqi conflict could be a factor of increasing demand for the Yen, nevertheless the USDJPY exchange rate remains in a flat trading pattern.
Lastly, the Canadian net short position declined slightly that week by $0.23 billion, with the net short position placing now at $1.98 billion while the other commodity currency the Australian dollar is decreasing its net long position. The USDCAD in recent trading breached key support at 1.0811 and is on a falling revival, thus in the following week we would expect CAD net short trading position to withdraw further.