USD longs slipped, EUR shorts leapt higher – Rabobank

According to CFTC Commitment of Traders Report, USD net longs slipped for the first time since the middle of August, though levels remain elevated, notes the research team at Rabobank.

Key Quotes

“In the spot market the EUR has been reclaiming some ground vs. the USD since the start of the month.”

“Net EUR short positions leapt higher last week. Some members of the Governing Council pushed back against the easing package announced at the September policy meeting.”

“Net short GBP positions dropped back for a fourth consecutive week.”

“JPY net positions have been back in positive ground for ten straight weeks on safe haven demand, but longs have been dropping back for four weeks.”

“Latest data show CHF net shorts edging lower. Despite its safe haven status, signs that the SNB is prepared to intervene in the FX market have distorted demand for the CHF.”

“CAD net long positions edged lower last week. The fall back in oil prices since the middle of September has weighed on the CAD.”

“AUD net shorts dropped back last week. The AUD’s role as a proxy for confidence in China suggests that trade talks between the US and China are providing direction. The RBA cut rates again this month.”