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Thomson Reuters
Apr 30 - 02:36 PM
EUR/USD - COMMENT-IMM: Dogged EUR/USD Dip Buyers An Obstacle To Dollar Gains
First appeared on eFXplus on Apr 30 - 12:35 PM

Today's close of the current CFTC IMM spec reporting period is likely to show little gain in the net long dollar position from last week's 3-1/2-year high, when data are reported on Friday, despite last week's rise in the DXY index to a trend high by 98.33 and EUR/USD low at 1.1110.
In Friday's report nL1N2281GX, EUR/USD accounted for the largest net-long dollar position at $14.791 bln.
The composition is instructive, which included a gross EUR/USD short of 253,749 contracts.
But it was also comprised of a sizable gross EUR long of 148,331 contracts, which had risen in the April 17-23 CFTC period from 144,867 the previous week.
Though it rose to a lesser degree than EUR shorts, the gross EUR long may temper future changes in positioning in EUR/USD and the broad dollar more broadly.
JPY is the next largest net long dollar position at $10.55 bln, where traders are more uniformly biased in favor of the U.S. currency.
Specs were short 122,535 yen contracts versus longs of 28,121 contracts.
That would indicate an easier path for dollar longs to gain momentum with less of a short USD position to plow through.
Meanwhile, GBP/USD positioning has hovered either side of flat for the past few weeks owing to diminished Brexit tensions.
It stands near flat, with specs long 54,522 contracts and short 56,357 contracts.
The rise in USD shorts, even as the net dollar position grows, may signal that the dollar has put in the high for the range or is close to doing so.

Weekly Majors CFTC Chart: Click here

DXY-EUR- UST 2/10 Chart: Click here

Source:
Thomson Reuters IFR Markets

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