The latest CFTC Positioning Report for the week ending September 24 reveals significant developments in currency and commodity positioning among speculators. Notably, there has been a marked increase in net long positions in the Japanese yen, reaching a level not seen since October 2016, surpassing 66,000 contracts. This surge in bullish sentiment came alongside a rise in the longs to shorts ratio, as well as an uptick in net shorts held by commercial traders. The open interest also saw a healthy improvement during this period. Meanwhile, the USD/JPY pair steadily climbed, breaching the 144.00 level while remaining within a consolidative pattern.
In the Eurozone, speculative net longs have risen to two-week highs, indicating growing bullish interest among traders. In contrast, commercial participants maintained their short positions relatively unchanged, contributing to a stable overall market environment. Despite the mixed dynamics, open interest experienced a slight uptick. The EUR/USD exchange rate exhibited erratic movement, although it displayed a subtle upward trend, hovering in the upper 1.1100s range.
Conversely, the net long positions in the US dollar have continued to diminish, now reaching their lowest levels in over six months, dropping to just below 1,000 contracts. This reduction coincided with a modest increase in open interest. The US Dollar Index has been fluctuating within a confined range amid an ongoing broader bearish trend, reflecting the cautious sentiment among traders.
In the commodities sector, gold has seen a significant boost in speculative long positions, now exceeding 315,000 contracts. This marks a third consecutive week of increasing open interest, indicating a strengthening interest in the precious metal. gold prices have surged dramatically, consistently reaching new record highs above the $2,600 level, as bullish momentum continues to dominate the market.
