Scotiabank: pessimism of speculators on the dollar reached a 4-year high

As follows from the latest CFTC data, the positioning of speculators in the foreign exchange market as a whole underwent quite minor changes the week before September 12, however their net short position in the dollar exceeded the recent August high and now has reached a record value since 2013.
The only change was the speculative positioning in the single currency, where there was a tangible reduction in net long ($ 1.47 bn) due to the opening of new short positions, when the euro / dollar tested the $ 1.20 area. Yen on the contrary actively bought (+ $ 1.88 billion).
As we expected, speculators continued to buy the pound, and the volume of new longs was twice the volume of new shorts. The reduction of the net long for the luni was almost entirely due to the closing of long positions. There was also a moderate decrease in net long for Aussie and Kiwi, and positioning for the franc remains generally neutral.

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