CFTC Report: Speculators Bet on Bearish Yen and Euro, Crude Oil Sees Reversal

The latest CFTC report indicates that speculators rebuilt their bearish conviction in Japanese Yen (JPY) and Euro (EUR), continued selling Australian Dollar (AUD), and covered British Pound (GBP) positions, while crude oil (WTI) saw a significant reversal.

Foreign exchange markets turned more defensive, with JPY experiencing the largest weekly deterioration, as net positioning fell by 29,462 contracts to a 152,125-contract short. This leaves the market near its 3rd historical percentile, and the 0.57% rise in USD/JPY confirmed renewed selling.

Euro followed closely, with speculators cutting net positioning by 28,733 contracts, reversing last week's brief repair and rebuilding a 41,338-contract short position. The EUR/USD fell 0.19%, aligning price and flow.

AUD remained a different kind of bearish story, as selling extended for a ninth consecutive week, yet AUD/USD gained 0.33%. This divergence keeps the squeeze risk alive.