The latest CFTC positioning data showed that investors had once again cut their US Dollar long exposure, dropping to $14.498bln vs G10 currencies. Much of this had been down to the sizeable reduction in Euro net shorts (-$1.244bln) as gross shorts had been cut by 7,431 contracts. Elsewhere, investors continued to seek safe-havens amid the increasingly uncertainty economic environment, as such, Japanese Yen bullish bets rose by $768mln to $3.666bln, highest since November 2016, which Swiss Franc net shorts had been scaled back.
GBP positioning had been relatively unchanged with bearish bets easing slightly to $7.028bln, nonetheless, market participants remain the most bearish on the Pound in the G10 FX space. Risk sensitive currencies (AUD, CAD, NZD) also saw little movement.
The U.S. Dollar is trading lower on Tuesday following yesterday’s dramatic reversal to the upside. That move was fueled by positive developments over U.S.-China trade relations. Today’s price action suggests traders are looking for more details as to whether the trade talks between the two economic powerhouses will resume in September.
Over the near-term, market uncertainty around the trade dispute is going to remain at elevated levels, however, even with today’s early weakness, traders remain cautiously optimistic that following Friday’s volatile events, the two parties will soon resume negotiations or perhaps reach a cease fire over a further escalation of tariffs.
At 10:16 GMT, September U.S. Dollar Index futures are trading 97.815, down $0.174 or +0.18%.
GBP positioning had been relatively unchanged with bearish bets easing slightly to $7.028bln, nonetheless, market participants remain the most bearish on the Pound in the G10 FX space. Risk sensitive currencies (AUD, CAD, NZD) also saw little movement.
The U.S. Dollar is trading lower on Tuesday following yesterday’s dramatic reversal to the upside. That move was fueled by positive developments over U.S.-China trade relations. Today’s price action suggests traders are looking for more details as to whether the trade talks between the two economic powerhouses will resume in September.
Over the near-term, market uncertainty around the trade dispute is going to remain at elevated levels, however, even with today’s early weakness, traders remain cautiously optimistic that following Friday’s volatile events, the two parties will soon resume negotiations or perhaps reach a cease fire over a further escalation of tariffs.
At 10:16 GMT, September U.S. Dollar Index futures are trading 97.815, down $0.174 or +0.18%.
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