The analysts of Rabobank evaluate the details of the CFTC's latest Commitments of Traders Report.
US CPI data significantly strengthened the USD in the spot market
“Net short positions in USD decreased, due to an increase in long positions. We saw a stellar NFP data of 303,000 new jobs added to the US economy versus expectations of just 214,000. Last week, the US CPI data was stronger than expected. Inflation data strengthened the USD significantly in the spot market, suggesting that another increase in USD long positions is likely in the next round of data from speculators.”
“Net long positions in EUR increased, driven by a decline in short positions. That said, Eurozone aggregate CPI inflation this week posted a slightly lower than expected reading of 0.8% month-on-month, along with weaker selling. contractionary retail positioning in response to the ECB's decision to keep rates unchanged and Lagarde's rhetoric at the press conference will be reflected in next week's report, but the Euro has been under pressure in the spot market. “
“Net long positions in GBP have declined, driven by a decline in long positions. There has been little UK data release this week. Investors are pricing in the probability of a June cut in the OIS curve at 30% of GB, as the UK battles stubborn inflation.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
