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These are the main highlights of the CFTC Positioning Report for the week ended on September 22nd:

  • EUR net longs climbed to fresh 3-week highs, clearly opposing to the performance in the spot market, where the single currency traded on the back footing due to the impact of the second wave of the coronavirus pandemic and dovish ECB-speak, leaving the level of the exchange rate in the centre of the debate.
  • Net longs in the quid moved to 2-week tops, as there seems to be a ray of light in the EU-UK trade talks (which are expected to resume this week). The dovish stance of the BoE is expected to keep occasional bullish attempts in GBP limited for the time being.
  • In the safe haven space, net longs in the Japanese yen and the Swiss franc edged higher, both motivated in rising concerns over the impact of the rising cases of COVID-19 across the world.
  • Regarding the dollar, speculators increased their net shorts to the highest level since late November 2017 beyond 9K contracts following the latest FOMC event and the dovish message from the Fed. However, and in light of the recent rebound in the risk aversion sentiment, it is expected that the bearishness around the buck has lost some traction during last week.