Market Positioning Shifts: JPY Turns Net Long, CAD Shorts Narrow

The financial markets have experienced significant shifts in positioning over the past week, according to data from the CFTC. Japanese Yen (JPY) net positioning improved by around 103K contracts to a net long of 10.8K contracts, marking the biggest weekly increase since early August. This change is reflected in the USD/JPY currency pair, which collapsed to the mid-153.00s during the period.

The Canadian Dollar (CAD) also saw a significant shift, with non-commercial net shorts narrowing by around 37.6K contracts to 70.5K contracts. The USD/CAD currency pair fell modestly, revisiting the 1.3800 neighbourhood, consistent with the positioning change.

Speculative net longs in WTI increased to 136.6K contracts, with its settlement rising markedly and surpassing the $96 mark per barrel. In addition, positioning remains light at the 15th net percentile. Speculators added around 3.8K contracts to their Gold net longs, taking them to nearly 232K contracts alongside a decent price gain to the $4,400 mark per troy ounce.

The Euro (EUR) and British Pound (GBP) saw weakened positioning, with EUR net shorts widening to 42.6K contracts, hitting the largest deterioration since late July. However, sustained price gains could pressure shorts in both currencies.