CFTC Positioning Report: EUR longs climbed to nearly a decade tops

These are the main highlights of the CFTC Positioning Report for the week ended on August 25^th:

• Speculators kept adding gross longs to their already positive position in EUR while markedly reducing their short exposure, taking net longs to the highest level since late December 2011 at nearly 211.8K contracts. The positive mood surrounding the single currency, improvement in fundamentals of the euro region and prospects of a strong recovery following the coronavirus crisis keep sustaining the upbeat sentiment among investors.
• On the opposite side of the road, USD net shorts leapt to 2-week highs at around 7.8K contracts. Speculators added to their negative stance on the dollar ahead of the Jackson Hole event, while this trend is seen exacerbated this week in light of the dovish tone from Powell’s speech.
• Net longs in the Sterling survived for the second consecutive week, mainly on the back of dollar-weakness and some sparks of positive results in the UK docket. Prospects for the British pound are far from bright in light of Brexit woes, deteriorating mood around the EU-UK trade talks and a dovish BoE.
• Gold net longs were trimmed to levels last seen in early June just past 221K contracts, as market participants appear to have been cashing out gains in the wake of the strong June-August rally.