The CFTC Report-Euro Net Position Turns Negative

The latest report by Commodity Futures Trading Commission (CFTC) covering data up to the 13th of May showed that investor’s bias is changing. The Euro bullish bias completely eliminated with the net position turning negative against the US dollar. At the same time the Japanese Yen negative bias refreshed with the weekly change standing at $-0.45 billion. The net position on the Japanese Yen continues to be the largest negative at minus $7.91 billion. Moreover, the British pound had a negative weekly change as well of $0.97 billion reducing the bullish bias to $3.33 billion.

Furthermore, the Euro transformation to bearish net position could be an indication of trend reversal. That is coupled with expectations of ECB further easing. Euro net position now stands at minus $0.37 billion compared to previous week $5.66 billion. The weekly change was a negative $6.04 billion. Moreover, the Swiss franc showed some moderation on its net long position following the Euro.

The Canadian net short position declined by $0.51 billion that week, with the net short position placing now at $2.38 billion. Our expectation is that we will see the Canadian dollar to pare back its losses, since the USDCAD is down trending. Lastly, bullish bias toward the Australian dollar strengthened. Thus we recognize some increase in demand for commodity currencies.