Commenting on the latest CFTC Commitment of Traders Report (COT), Rabobank analysts note that net longs for the USD declined for the 10th consecutive time last week.
Key quotes
“USD has been one of the worst performers in December and in the subsequent sessions following the release of the CFTC data we saw the DXY USD index hit lows not seen since early July.”
“USD and US rates remain somewhat independent and the Fed is firmly in hold mode. The Phase One trade deal has taken some of the shine off the USD and while the market remains in glass half-full mode, USD may remain better offered but year-end dynamics could well change that.”
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