Analysts at Rabobank note the latest CFTC Commitment of Traders Report reveals that USD net longs continue to consolidate, having hit their lowest levels since mid-June in December.

• "Net EUR short positions have dropped back having risen to their highest levels since October the previous week.
• Net GBP positions have held in positive ground for three consecutive weeks. This is the longest run for GBP net longs since mid-2018.
• JPY net positions have held in negative ground for thirteen consecutive weeks.
• CHF net shorts have fallen for five consecutive weeks.
• CAD net long positions doubled last week. This is likely linked to the sharp rise in oil prices on the back of the US/Iran tensions which have now eased.
• AUD net shorts continued to drop."