FXStreet (Guatemala) – Analysts at TD Securities offered the CFTC Commitments of Traders Report for week ending Tuesday, May 19th.

Key Quotes:


“A reduction in USD bull bets continued for another week in the CFTC data through May 19th. Aggregate implied USD positions eased to USD27.0bn from nearly USD30bn in the prior week, which is the lowest level since August 2014.”


“Not surprisingly, the reduction on USD longs came off the back of pared net EUR shorts of about 10.6k contracts to –168k but is likely only temporary given the 4-big figure move lower since Tuesday. Similarly, net GBP shorts were pared back this week by 7.4k contracts to –23.4k. Notwithstanding last week’s move, the trend in the latter has been for a gradual short cover as markets should focus on improving macro fundamentals and prospects of a BoE hike early next year rather than EU referendum concerns (which we think are overstated).”


“The most interesting development in the CFTC report however, was that Canada has recorded its first net long position since September of last year, and stand at 4.3k contracts an increase of 8.3k from the previous week. The change in positions was largely observed within the leverage fund community. But as we noted here, we advocate long USDCAD positions as we think the BoC is overstating growth prospects in the second half of the year.”


“A similar dynamic occurred in the AUD where net longs grew by 2.8k contracts to 7.3k, the largest since September of last year. Meanwhile, traders are now small net short the NZD at –2.2k.”


“Net JPY shorts were little changed as traders pared back their positions by 1.6k contracts to –22k. Net MXN shorts were increased by 4.3k contracts to –31.3k in 23k contracts this week to –27k, but this is a relatively modest amount given the amount of volatility in positions observed over recent weeks.”