These are the main highlights of the CFTC Positioning Report for the week ending on April 14th:
- Speculators kept the positive stance on the single currency and pushed the net longs to the highest level since early June 2018, with gross longs increasing for the fourth consecutive week. Some positive headlines regarding the pace of infected cases could be slowing down in Italy and Spain appears to have lent support to the euro along with news citing some countries are planning to ease restrictions in order to reactivate the economy of the region. In addition, the solid position of the current account in the broader Euroland remains a supportive factor for the currency.
- Net longs in the British pound continued to ebb on the back of rising concerns on the impact of the COVID-19 on the economy. In addition, Brexit jitters seem to have re-surfaced along with predicted tough EU-UK trade negotiation and the possibility of an extension of the transition period beyond December 31, 2020.
- USD net longs climbed to fresh 6-week highs on the back of safe haven demand and despite the persistent (albeit anticipated) deterioration of the labour market and speculations of the economy slipping into recession in the next months.
- Net shorts in VIX, a.k.a “the panic index”, rose to the highest level in the last four weeks in tandem with somewhat decreasing volatility in the global markets and ebbing concerns regarding the COVID-19.
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