These are the main highlights of the CFTC Positioning Report for the week ended on September 10th :
- USD net longs advanced to the highest level since March 12, as market participants appear to have fully priced in a 25 bps ‘insurance cut’ by the Fed later this week, shifting their focus instead to the healthy US fundamentals vs. the rest of its peers. In addition, the prospects of extra stimulus by the ECB also played its part supporting inflows to the buck.
- Speculators scaled back their short positions in AUD, taking the net shorts to the lowest level since late July. The better mood in the US-China trade front and prospects of positive talks next month in Washington has supported the sentiment around the Aussie Dollar.
- Persistent uncertainty around UK politics and absence of significant progress around Brexit despite the recent improved headlines pushed GBP net shorts to three-week highs, leaving the GBP-universe ripe for further volatility.