USD net long positions increased for the fifth consecutive week – Rabobank

Analysts at Rabobank assess the latest CFTC Commitment of Traders report:

Data yet to signal significant weakness in US economy

"USD net long positions increased for the fifth consecutive week. This was driven by an increase in long positions. The Fed recently announced a hawkish pause, and data has yet to signal significant weakness in the US economy."

"EUR net long positions have decreased for the seventh consecutive week, driven by an increase in short positions. The ECB hiked rates again in September, but signalled this may have been the peak of the hiking cycle. Additionally, persistent strength in USD is likely to drag down EUR long positions going forward."

"GBP speculators hold a net short position for the first time since April. This move was driven by an increase in short positions. The Bank of England did not raise rates during the September meeting, following softer-than-expected CPI inflation data."

"JPY net short positions increased for the fourth consecutive week, driven by an increase in short positions, to a 3-year high. The BoJ maintained a dovish tone at its September policy meeting, though the market continues to speculate as to the possibly of policy tweaks going forward."

"CHF net shorts have increased for the second consecutive week, driven by a rise in short positions. The SNB chose to pause rate hikes during the September meeting, and moderate CPI inflation prints suggest that this may be the end of their hiking cycle."

"CAD net shorts have increased. This was driven by an increase in short positions. AUD net short positions have decreased for the second consecutive week, driven by an increase in long positions."