The latest CFTC Positioning Report, covering the week ending November 5, reveals notable trends in market sentiment and trading positions across various currencies and commodities.
Speculative trading saw a continued net sell-off of the Japanese Yen for the second week, with net short positions reaching around 44,100 contracts. In contrast, non-commercial traders increased their net long positions to about 47,300 contracts. This activity coincided with a sustained increase in open interest for five consecutive weeks. Throughout this timeframe, the USD/JPY pair exhibited a gradual downward trend around the 152.00 mark, as market participants evaluated the Bank of Japan’s recent decision to maintain its interest rates.
In the Eurozone, net short positions in the EURO fell to the lowest level in three weeks, with the figures hovering around 21,600 contracts. At the same time, hedge funds and commercial traders reduced their net long positions to just over 600 contracts, alongside a slight decrease in open interest. EUR/USD showed a modest upward movement, with investors maintaining a cautious stance ahead of significant events, including the US election and the Federal Open Market Committee meeting.
Meanwhile, net long positions in the US Dollar decreased to a three-week low, totaling only 95 contracts. This reduction mirrored a drop in open interest as the US Dollar Index remained under pressure after surging past the 104.50 mark in October. Market attention is now focused on the impending US elections and the Fed’s forthcoming interest rate announcement.
In the UK, net long positions in the British Pound declined for the fifth week in a row, falling to just above 45,000 contracts, while open interest also dropped to multi-week lows. The GBP/USD pair showed modest upward movement as market participants processed the Autumn Budget and anticipated the Bank of England’s interest rate announcement.
Finally, in the commodities market, net longs in gold decreased to their lowest levels since early August, measuring nearly 255,300 contracts, with open interest also declining. gold faced renewed selling pressure after nearing historic highs just below $2,800 per troy ounce, finding temporary support around the $2,720 level.
