EUR net longs at multi-month highs

These are the main important points of CFTC Position Report for the week ending August 27.

• Speculators boosted their net long prices in the European currency to levels last seen in January, while net shorts by commercial players also rose to multi-month highs, all amid a marked increase in open interest. EUR/USD, meanwhile, climbed to fresh YTD highs around the 1.1200 region, where an initial barrier appears to have emerged. Some caution over a possible ECB interest rate cut in September also supported the uptrend at the spot.
• US dollar net longs rose to around 19,000 contracts for the first time since early December 2023. The US dollar index (DXY) retreated to fresh 2024 lows around 100.50, still amid firm expectations that The Fed may cut interest rates later. this month.
• Non-commercial traders also added longs for a third straight week, taking net positions to four-week highs. Buying interest in the pound remained good and solid, lifting GBP/USD well north of 1.3200 to new yearly highs.
• Speculators remained net long the Japanese yen for a third straight week as open interest continued to move higher. USD/JPY resumed its downtrend and revised three-week lows in the sub-144.00 area, mainly on the back of persistent US dollar weakness.
• Gold net longs rose to new highs near the 295K contracts amid a small drop in open interest. The precious metal advanced to an all-time high, breaching the $2,530 per troy ounce mark, always supported by steady expectations of lower Fed rates this month.