Speculative EUR Short Positions Back To 2010 Highs
After having contracted notably to only -93,325 net short speculative contracts, it appeared that speculators could be loosening their death grip on the EURUSD. The most recent numbers from the CFTC commitments of traders report, however, indicates that after last week, EUR shorts once again piled back in, after the second largest adverse move in EUR sentiment in 2010. -18,620 contracts were added to short positions, the second largest such move in 2010, following only the -28,576 from March 23, resulting in a speculative Euro FX exposure of -111,945 net short contracts: just a fraction higher than the all time low ever seen of -113,890 on May 11. As this data is for the week ended June 8, the late week shakeout in which the EURUSD climbed all the way back to $1.21 is therefore just a case of all the new weak hands getting shaken out, after ambitions of a quick profit did not materialize. We now expect the net short number to once again drop below the -100,000 mark, and for the EURUSD speculative onslaught to continue.