Analysts at Rabobank note that according to the latest CFTC Commitment of Traders Report, USD net longs slipped for a third consecutive week.

• “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 dropped sharply to their lowest levels since early September.
• Net short GBP positions dropped back for a sixth consecutive week to their lowest level since June.
• JPY net positions held in negative ground for a second consecutive week.
• Latest data show CHF net shorts falling moderately but remaining broadly stable.
• CAD net long positions surged higher last week. Robust jobs data has strengthened the case for steady rates from the BoC going forward.
• AUD net shorts fell last week. The AUD’s role as a proxy for confidence in China suggests that US/China trade talks are providing direction.”