CFTC Positioning Report: EUR net shorts receded to multi-month lows

These are the main highlights of the CFTC positioning report for the week ended on July 16.

• The speculative community added EUR gross long contracts to levels last seen in late September 2018, taking the net short position to the lowest level since October 23 2018. The likeliness of a larger rate cut by the Fed at the July meeting appears to have improved the prospects around the single currency.
• On the other hand, USD net longs rose to new 4-week highs, as the greenback remains consolidative and closely following Fedspeak and alternating views on potential rate cuts in the near term future.
• Net longs in crude oil climbed to the highest level since late May amidst the persistent decline in US supplies and signs that the tight market remains well in place. In addition, traders continued to factor in escalation in tensions between Iran and the US and implications on the supply side.