In light of the latest CFTC report, these are the main highlights for the week ended on July 31:
- USD speculative net longs climbed to the highest level since May 30 2017. The build in fresh long positions followed the auspicious results from the first revision of Q2 GDP coupled with expectations of two more rate hikes by the Fed (likely in September and December).
- On the other side, speculators trimmed their EUR speculative longs to fresh 2-week lows after the ECB reiterated the region still needs considerable stimulus and amidst market speculations that the first rate hike should come in Q3 2019.
- GBP speculative net shorts climbed to levels last seen over a year ago, always against the backdrop of political uncertainty and lack of progress in the Brexit negotiations.
- Speculators extended their VIX (‘panic index’) negative positioning to the highest level since December 19 2017, prior to the spikes seen earlier this year.
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