Speculators Turn Defensive as Crude Oil Longs Plummet
The latest CFTC report shows that speculators have become more defensive in their positioning, especially when it comes to crude oil. During the week leading up to September 29, long positions in WTI (West Texas Intermediate) crude oil were significantly reduced, while short positions in the Canadian Dollar went up.
According to the data, the net long exposure that speculators had on WTI decreased to around 109.5K contracts, with a price drop of more than 5% approaching the $89.00 mark per barrel. This indicates that the market is going to confirm the positioning signal.
The Canadian Dollar shorts also deepened, with non-commercial traders turning less constructive on CAD, increasing their net longs to nearly 78.7K contracts. The positioning signal is being confirmed as spot climbed markedly to the vicinity of the 1.4200 hurdle.
However, the Japanese Yen (JPY) showed inconsistencies in price and positioning, making it difficult to determine a clear trend call. In contrast, the prices and positioning of CAD, EUR, WTI, GBP, and Gold moved in the same direction, providing a more solid footing for traders.