The latest CFTC Commitment of Traders Report reveals that USD net longs slipped for a fifth consecutive week as expectations that a phase 1 trade deal between the US and China could be close to being achieved coupled with another Fed rate cut in October boosted risk appetite.

• "Net EUR short positions pushed higher for a second week. In late October they had dropped sharply to their lowest levels since early September.
• Net short GBP positions dropped back for an eighth consecutive week and are now at their lowest level since May.
• JPY net positions held in negative ground for a fourth consecutive week.
• CHF net shorts increased 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 continued to surge last week. Robust jobs data strengthened the case for steady rates from the BoC going forward. However, the BoC wants to keep that door open.
• AUD net shorts dropped sharply as hopes for a US/China trade deal grew. The AUD’s role as a proxy for confidence in China suggests that doubts over the trade deal could be reflected in the next set of data.”