The latest report by Commodity Futures Trading Commission (CFTC) covering data up to March 11th displayed that bullish sentiment continues to strengthen towards the Euro. In addition the Swiss Franc bullish bias is building for another week. At the same time the positive bias moderated with the GBP to $2.3 billion against the US Dollar, after finding resistance at 1.6777.
Moreover, the Japanese Yen negative bias expanded to $12.07 billion. The Canadian Dollar net short position against the US Dollar, on the other hand, was reduced according to the latest data. Lastly, bearish sentiment remained steady with the Australian Dollar , without any significant weekly change taking place.
The Euro had the biggest weekly change for one more week. The net long position increased to $6.3 billion, following the European Central Bank decision to hold key rates steady. Also the EURUSD breached key upside hurdle at 1.3832 increasing bullish potential.
The biggest negative weekly change on the Japanese Yen reflects the improvement of traders’ risk appetite sentiment due to shining US jobs report for January. The USDJPY inched to resistance at 103.74 but now has dropped back to 101.20 and for that reason we would expect the net short position to narrow at the next report. Lastly geopolitical risk due to Ukraine crisis is likely to have increased demand for the samurai currency.