The Commodity Futures Trading Commission (CFTC) Positioning Report for the week ending October 8 reveals significant shifts in trader sentiment across various currencies and commodities. For the first time since April, non-commercial traders have taken net short positions in the US Dollar, totaling nearly 2,000 contracts. This change occurs amid a slight decline in open interest. Throughout this week, the US Dollar Index (DXY) has shown resilience, rebounding from the critical 100.00 area to surpass 102.00. This recovery appears driven by waning expectations of a 50 basis point interest rate cut in November, bolstered by economic data and optimistic statements regarding the US economy’s prospects.
In the Japanese yen market, speculators reduced their net long positions to their lowest level in six weeks, approximately 36,500 contracts. Concurrently, hedge funds and other commercial entities also scaled back their net shorts to levels not seen in multiple weeks, countering a slight rise in open interest. This renewed selling pressure on the Yen has propelled USD/JPY to achieve new two-month highs, breaking above the critical 149.00 level.
The EURO has seen its speculative net longs contract to eight-week lows of around 39,000 contracts, with commercial players reducing their net shorts to figures comparable to late July. Open interest has also decreased for the second consecutive week. As a result, EUR/USD has experienced a corrective drop, falling below the significant psychological support level of 1.1000, largely due to the US Dollar’s renewed strength.
Meanwhile, net longs in the British pound have edged down slightly, alongside a small decline in open interest. Reflecting trends in broader risk assets, GBP/USD has continued its correction after reaching yearly highs above 1.3400 in late September, a move further influenced by dovish comments from the Bank of England.
In the commodities market, non-commercial net longs in gold have decreased to levels not witnessed since mid-August, registering around 278,000 contracts. This reduction comes amid a notable decline in gross longs and a modest retreat in open interest over the past two weeks. gold prices are attempting to stabilize near their record highs, consistently finding support around the $2,600 per ounce level.
