USD bulls lost ground as the greenback corrected from its peak. As suggested in the CFTC Commitments of Traders report in the week ended October 2, NET LENGTH of USD index climbed mildly higher, by +27 contracts to 37 036 contracts. Both speculative long and short positions increased only marginally. During the week, the DXY index climbed +1.47%. The greenback rose against major currencies with the exception of Canadian dollar (CAD). The latter appreciated as Canada and the US made a preliminary deal on new trade relations.
EUR futures drifted to NET SHORT of 7 101 contracts as speculative short positions rose while longs plummeted. Meanwhile, NET SHORT for GBP futures decreased -7 738 contracts to 59 340. Both speculative longs and shorts dropped, with that of the latter overwhelmed. Hopes that the Brexit deadlock would be resolved on signs that the UK and the EU might compromise on the Withdrawal Agreement.
On safe-haven currencies, Net SHORT for CHF futures dropped -2 681 contracts to 13 402 while that for JPY futures deepened, by +29 327 contracts, to 114 046 during the week. Swiss franc has remained under pressure as USD strengthened on rising yields.
All commodity currencies stayed in NET SHORT positions. NET SHORT for AUD futures slipped -343 contracts to 71 718 as traders trimmed bets on both sides. NET SHORT for NZD futures dropped -1 239 contracts to 30 596 while that for CAD futures declined -1 048 contracts to 18 484.
