CFTC report from April 12 covered information available on April 9

According to the CFTC report, currency market participants have significantly reduced the amount of net short speculative positions on the European currency. Much less significant was the change in position on the Japanese yen that has once again become the leader among the six major currencies having the largest net short position. Significant short positions are also seen on the British pound and the Canadian dollar. Australian dollar is the only currency that continues holding the net long position vs. US dollar.

It is noteworthy that the massive risk aversion has been fixed last week that was reflected in the reduction of both long and short futures positions on almost all observed currencies.

The net short position in the Canadian dollar rose to -7 billion USD, reaching a 6-year record high. Thus, the Canadian dollar is the third among six major currencies having the largest net short position after the euro and the Japanese yen.

The net long position in the Australian dollar reduced again, but not too much. Its volume is estimated at 8.2 billion USD. The Australian dollar is the only one of six currencies with a net long position against the US dollar.

The euro Last week, showed the greatest reduction in net short position among six major currencies. The position decreased by 2.2 billion to -8.3 billion USD. The market sentiment remains bearish, as the single currency has moved to the second place at having the largest short position, being behind only the Japanese yen.

After February CFTC report showed that the net position on the British pound was negative for the first time since September 2012, the market participants continued gaining more and more sell contracts. While the trend remained strong. The net short position remains near record levels at -6.7 billion USD. The remarkable difference between the GBPUSD currency pair dynamics and the net position volume that is followed with the increase of short positions for the GBP and that is a warning sign of the possible reversal.

Net position on the Swiss franc remains negative, at -1.3 billion USD. The market sentiment is bearish, but the last month dynamics suggests their stabilizing.

The yen has become a leader once again by the net short positions against the US dollar, despite its slight decline last week. The net short position on the currency is -9.8 billion USD. The sentiment remains bearish.