Canadian Greenback Positioning Trying Stretched, EUR/USD Bulls Rising

US Greenback, USD/CAD, EUR/USD, COT Report –Analysis

• US Greenback Shorts Develop for fiveth Consecutive Week
• Canadian Greenback Positioning Trying Stretched
• Swiss Franc Web Shorts Rise, Regardless of Sturdy Spot Efficiency

Canadian Greenback Positioning Trying Stretched, EUR/USD Bulls Rising – COT Report

Within the newest reporting week, US Greenback shorts rose for a 5th consecutive week, though with a lot much less conviction as internet shorts had elevated by a marginal $70mln. In the meantime, internet longs within the Euro grew by $909mln as optimism rises over the financial restoration within the Euro Space, which has taken EUR/USD again above 1.22. That mentioned, with this view in thoughts, I stay bullish on EUR/CHF.

Bullish positioning on the Canadian Greenback continued to develop with one other $620mln added (or 3% OI), making the Loonie the biggest bull guess on an open curiosity adjusted foundation throughout the G10 majors. Nevertheless, as I’ve mentioned beforehand, spot CAD failing to interrupt 1.20 raises the chance for a correction with positioning starting to look stretched (3yr Z-score of 1.89).

Throughout the safe-havens, each the Japanese Yen and Swiss Franc have been out of favour with the latter seeing quick cash accounts (leveraged funds) flip again to internet brief. The change In positioning is considerably at odds with the Swiss Franc’s spot efficiency, which had been one of many higher performers. Nevertheless, given the backdrop of low volatility and bettering financial fundamentals, attain strikes in CHF is unlikely to be sustained.

Weekly FX Positioning

Supply: CFTC, DailyFX (Covers as much as Could 18th, launched Could 21st)

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US Greenback Positioning

Supply: Refinitiv, DailyFX

USD/CAD Positioning

USD/CHF Positioning

Supply: Refinitiv, DailyFX

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