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USD Net Longs Rise After Falling for Eight Weeks

According to the report of The Commodity Futures Trading Commission (CFTC) covering data up to May 26 the net long US dollar position rose to $29.94 billion from $25.81 billion. Investors increased positive bets in US dollar after scaling them back for eight weeks in a row. As is evident from the Sentiment table, the sentiment deteriorated for all major currencies except for the Canadian dollar and euro, and the increase in yen’s net short bets contributed the most to the rise of US net long position. The bullish US dollar bets increased after the US inflation report on May 22 showed an unexpected 0.3% rise in core consumer price index in April – the biggest gain since January 2013. Also Fed Chair Janet Yellen said in her speech on US economic outlook the Fed is on track to increase interest rates this year. Positive inflation data and the statement by the Fed Chair about impending increase in interest rates boosted bullish dollar sentiment. The Swiss franc, Canadian dollar and Australian dollar continue to be held net long against the US dollar.

The net short bets in euro narrowed $0.1bn to $23.3bn, with euro comprising the bulk of long US dollar position. The euro net short position narrowed as investors increased both gross long and gross short positions.

The Japanese yen sentiment deteriorated significantly as net short position widened $4.0bn to $6.30bn as investors reduced gross longs and increased gross short positions for the third week in a row. The British pound net short bets widened $0.2bn to $2.5bn as investors reduced gross long and gross short positions.

The sentiment towards Australian dollar deteriorated as the net long position in Australian dollar narrowed $83 million and fell to $0.5bn. Investors increased both gross short and gross long positions. Canadian dollar net long bets increased by $0.2bn to $0.6bn as investors increased gross shorts and gross long bets. The Swiss franc net long position, which is the highest among the major currencies held net long against the US dollar, narrowed by $0.2bn as investors cut gross longs while they increased gross shorts.

commitment of traders

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

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