CFTC report from May 10 covered information available on May 7

According to the latest data from Commodity Futures Trading Commission (CFTC), last week, the most significant changes occurred in the positioning on the Australian dollar and Canadian dollar. The net long speculative position on the Australian currency is very close to zero. We have a serious concern about its rate of contraction in the last few weeks, so we would not be surprised if we saw the net long position on Australian dollar transforming into a net short position. Meanwhile, the largest short position is still observed on the Japanese yen, followed by the British pound, the euro and the Canadian dollar. Overall positioning in the futures market testifies in the US dollar favor.

The net short position in the Canadian dollar declined again, moving the currency to the fourth place by largest short position. The position change is nearly 1.6 billion USD, the volume is estimated at 5.2 billion USD.

The net long position on the Australian dollar fell for the sixth consecutive time. This time it is very important - minus 2.5 billion USD. The position volume is estimated at 0.7 billion USD - the worst result since July 2012. However, the Australian dollar is the only one among six major currencies that keeps holding the net long position against the US dollar.

Last week, the euro showed an increase in the net short position. The position increased by 0.5 billion to -5.5 billion USD. The market sentiment remains bearish, and the single currency is the third currency on the largest short position among the six major currencies.

The net position on the British pound also rose. Last week, it was -6.1 billion USD. Expectations of market participants remain bearish and the pound is the second of six major currencies having the largest net short position.

The net position of the Swiss franc remains negative, amounting -0.8 billion USD. The market sentiment is bearish, but close to neutral.

The yen continues holding the leadership on the largest net short position against the US dollar. Last week, the short position increased by 0.8 billion USD, reaching 9.9 billion USD. The sentiment remains bearish.