US dollar’s weakness continued as risk appetite improved. As suggested in the CFTC Commitments of Traders report in the week ended December 15, NET SHORT of USD Index futures more than doubled to 14 056 contracts. Speculative long positions plunged -8 499 contracts and short positions dropped -929 contracts. Concerning European currencies, NET LENGTH in EUR futures declined -14 596 contracts to 141 833. NET LENGTH of GBP futures fell -1 642 contract to 4 068. British pound rallied last week, rising to a level not seen since May 2018 against US dollar, amidst hopes that a Brexit deal will be reached by Sunday.
On safe-haven currencies, NET LENGTH on CHF futures slipped -1 132 contracts to 9 291. By contrast, NET LENGTH on JPY futures plunged -4 203 contracts to 43 963. Concerning commodity currencies, NET SHORT of AUD futures slid -782 contracts to 9 325. Separately, NZD futures’ NET LENGTH soared +3 643 contracts to 14 193 during the week. Meanwhile, NET SHORT for CAD futures plunged -5 022 contracts to 15 716 contracts.
