Francesco Pesole, the FX Strategist at ING, notes that the latest CFTC data revealed that speculators paused their dollar selling in the week after the U.S. released its April inflation numbers.

"CFTC data for the week ending 18 May 2021 showed the aggregate dollar positioning was unchanged (at -6% of open interest) after four weeks of consecutive increases in net-short positions. That was broadly in line with the moves in the spot market, where the dollar rallied after the upside surprise in April’s US CPI on 12 May but then came under pressure again at the beginning of the following week."

"EUR/USD net-long positioning remained at 14% of open interest, CAD longs rose again but were offset from a positioning correction in GBP and another drop deeper into net-short positioning in the yen and the Swiss franc."