As suggested in the CFTC Commitments of Traders report in the week ended March 10, NET LENGTH in USD Index declined -10 076 contracts to 12 412. Speculative long positions fell -6 280 contracts and short positions gained +3 796 contracts. Concerning European currencies, NET SHORT for EUR futures soared +74 036 contracts to 12 667. The market was disappointed by ECB’s stimulus package as it failed to announced a rate cut. The market expects a rate cut will come in coming months. NET LENGTH for GBP futures dropped -8 834 contracts to 26 328.
On safe-haven currencies, CHF futures returned to NET LENGTH of 595 contracts. JPY futures also drifted to NET LENGTH of 8 157 contracts. Japanese yen resumed the safe-haven status amidst the current risk-aversion period. The outbreak of coronavirus in Japan has taken a backseat as a result of the widespread transmission in Europe. On commodity currencies, NET SHORT for AUD futures added +2 060 contracts to 54 013. Speculative long positions declined -15 089 contracts while shorts fell -13 029 contracts. Separately, NET SHORT for NZD futures dropped -1 581 contracts to 15 376 during the week while CAD futures recorded NET SHORT of 1 990 contracts.
