According to the latest CFTC Commitment of Traders Report, USD net longs slipped for the second consecutive week, note analysts at Rabobank.

“In the spot market the EUR has been reclaiming some ground vs. the USD since the start of Oct.

• The Fed’s action to relieve pressure in the US money market may have has some psychological impact in lessening demand for USDs.
• Net EUR short positions edged down slightly having leapt higher the previous week.
• Net short GBP positions dropped back for a fifth consecutive week.
• JPY net positions dropped back into negative ground have been positive for ten straight weeks on safe haven demand.
• Latest data show CHF net shorts increasing moderately. Despite its safe haven status, signs that the SNB is prepared to intervene in the FX market have distorted demand for the CHF.
• CAD net long positions pushed higher last week. Robust jobs data strengthens the case for steady rates from the BoC going forward.
• AUD net shorts increased modestly last week but remained below recent highs. The AUD’s role as a proxy for confidence in China suggests that US/China trade talks are providing direction. The RBA cut rates again this month.”