Analysts at Rabobank note that CFTC's Commitment of Traders Report revealed the USD net longs halved last week, hitting their lowest levels since mid-June.

• "Optimism regarding a phase 1 trade deal between the US and China boosted risk appetite and drew attention back to high-risk assets. That said, better than expected US economic data lent support to the USD towards the end of last week.
• Net EUR short positions have edged lower for two consecutive weeks, though strong direction remains absent.
• Net short GBP positions have dropped to their lowest level since May on hope that the new majority UK government will result in reduced political uncertainty.
• JPY net positions have held in negative ground for ten consecutive week.
• CHF net shorts have fallen back, but are likely to remain in negative territory assuming risk appetite holds up in the coming weeks.
• CAD net long positions have dropped to their lowest levels since October.
• AUD net shorts pushed higher last week. News of a China/US phase 1 trade deal is supportive but signs of slowing domestic growth could mean that QE comes into view in 2020."