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These are the main highlights of the CFTC Positioning Report for the week ended on March 23rd:

  • Speculators kept adding gross shorts to their JPY positions uninterruptedly since mid-January, taking the net shorts to the highest level since late February 2020. Higher US yields and the pledge to keep the accommodative stance unchanged for the foreseeable future by the BoJ have been exacerbating the outflows from the safe haven for yet another week.
  • Net longs in EUR and USD roughly kept the status quo against the backdrop of the reflation/vaccine trade coupled with higher yields and prospects of higher US inflation in the next months. It is worth noting that the US economy outperformance narrative continued to lend support to the strong upside momentum around the buck.
  • The context of higher US yields kept undermining the mood around Gold, motivating investors to drag net longs to yearly lows around 174K contracts amidst a consolidative stance in spot above the $1,700 mark per ounce troy.
  • Net longs in GBP retreated to levels las recorded in late February. The rally in Cable shed further ground on the back of renewed concerns over the UK economic recovery in the wake of the pandemic, the dovish stance from the BoE and the strong advance of the US dollar.