The recent CFTC Positioning Report for the week ending May 27 indicates that investors are increasingly concentrating on US economic data, amid cautious commentary from Federal Reserve officials and a lack of substantial progress in new trade agreements. This shift in focus has intensified skepticism among market participants.
Notably, the net short position among Non-commercial investors in the US Dollar (USD) has decreased slightly to just over 80 contracts. In contrast, open interest has risen to levels not seen in three weeks. Following a slump, the US Dollar Index (DXY) registered multi-week lows, continuing its decline from recent highs above the 102.00 mark and falling below the crucial 99.00 support level.
On the European front, speculative net long positions in the EURO (EUR) have surged to two-week highs around 79,500 contracts. At the same time, Commercial players, predominantly hedge funds, have raised their net short positions to about 132,000 contracts, also a two-week high. Open interest for EUR contracts surpassed 760,000, indicating sustained interest. The EUR/USD pair managed to briefly reclaim the area above 1.1400 before retreating.
In the case of the Japanese Yen (JPY), speculators have reduced their net long positions to a seven-week low of over 164,000 contracts. Concurrently, Commercial traders increased their net short positions to approximately 183,700 contracts, marking a two-week peak. Open interest has risen to about 377,000 contracts, reaching its highest level since March. The USD/JPY pair dropped to four-week lows near 142.00 but experienced a notable bounce afterwards.
The British Pound (GBP) has seen a rise in Non-commercial net longs to around 35,400 contracts—the highest level since late March—accompanied by a significant increase in open interest. The GBP/USD pair displayed strong momentum, nearing new highs just below the 1.3600 mark.
In the commodities sector, speculative net longs in gold reached five-week highs of approximately 174,200 contracts, despite a decrease in open interest. gold prices have remained stable, hovering around the $3,300 per troy ounce mark amid ongoing tariff uncertainties and geopolitical tensions.
Conversely, speculators have cut back on their net long positions in WTI crude, reaching multi-week lows with about 165,700 contracts, as open interest similarly decreased. WTI prices have experienced volatility, staying above the important $60.00 threshold due to fluctuating US trade policies, geopolitical developments, and the output strategies of OPEC+.
