This report analyses the performance of non-commercial positioning in FX futures on the Chicago Mercantile Exchange, valuing market sentiment in search of any extreme levels that could represent a risk of significant changes in the spot market.
The USD looks set to end the year as the only currency with meaningful net long exposure. Non-commercial accounts continued to add USD net longs in the week ended 17 December, worth USD3.9bn. USD positioning reached USD28.5bn, near the upper end of the range of the past few years. Meanwhile, positioning in other currencies was either neutral or net short.
For more, please see full note.