CFTC Positioning Report: JPY net shorts kept climbing

These are the main highlights of the latest CFTC Positioning Report for the week ended on November 19^th:

• Speculations of a positive outcome from the US-China protracted trade war continued to sustain the exodus from the Japanese safe haven for yet another session, taking JPY net shorts to the highest level since June 11^th. In the meantime, President Trump recently reiterated that a deal looks ‘close’ in spite of the stagnant negotiations around the ‘Phase One’ deal.
• Speculators kept scaling back their gross longs in USD, taking the net longs to the lowest level since mid-July amidst alternating risk-appetite trends. In addition, market participants seem unconvinced by the ‘wait-and-see’ stance from the Fed and could be anticipating further rate cuts in the next months, leaving the buck somewhat vulnerable.
• EUR net shorts climbed to fresh multi-week highs as investors shifted their focus to the region’s weak fundamentals. This view was also reinforced by the dovish tone from ECB’s C.Lagarde early last week.