The latest CFTC Positioning report for the week ending December 3 reveals significant shifts in trader positions across various currencies and commodities. In the EURO market, speculators maintained a bearish stance, increasing their net short positions to approximately 57,500 contracts, levels not seen since early March 2020. Contrarily, commercial traders sustained their net buying activity for the third consecutive week, coinciding with rising open interest. During this time, the EUR/USD pair struggled to maintain bullish momentum, with attempts to surpass the 1.0600 level ultimately proving unsuccessful.
In the case of the Japanese Yen, non-commercial traders reversed their earlier trend of net selling, emerging instead as net buyers with an addition of over 2,300 contracts. Hedge funds, however, shifted to net selling positions amid a modest rise in open interest. As a result, the USD/JPY pair continued its downward trajectory, dipping into the 149.00 range for the first time since mid-October.
Turning to the US Dollar, speculative net short positions increased for the fourth consecutive week, exceeding 3,000 contracts amidst a slight drop in open interest. The US Dollar Index experienced weakness, falling below the critical 106.00 support level as investors took profits from the November rally.
In the British Pound market, non-commercial net long positions declined to around 19,300 contracts, the lowest since late May, following a consistent rise in open interest. The GBP/USD pair managed to experience some gains, reaching the 1.2750 region and achieving the highest values in three weeks.
In the commodities sector, speculative net long positions in WTI crude oil rose above 201,000 contracts, marking the highest level since early August. However, crude prices came under pressure, briefly falling below $68.00 per barrel before recovering. This volatility was exacerbated by ongoing geopolitical tensions and concerns regarding the economic situation in China. Meanwhile, net long positions in gold reached five-week highs, nearing 260,000 contracts, driven by a falling US dollar and diminishing US yields, as market participants anticipated a potential interest rate cut by the Federal Reserve.
