🧮Hedge Funds Added USD Longs Into Non Farm Payrolls: Cable FX Macro

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• The most recent Commitment of Traders (COT) data provides significant insights into market positioning in anticipation of the upcoming Non-Farm Payrolls (NFP) release scheduled for August. According to the findings from the Commodity Futures Trading Commission (CFTC) survey, there has been a notable shift in the strategies employed by fast money players, who are typically characterized by their high-frequency trading and speculative activities. In a striking development, these market participants have nearly doubled their net long positions in the US dollar (USD) ahead of the critical jobs report. Our detailed calculations indicate that leveraged funds are currently holding an impressive total of 100.04K contracts net long in the broad USD position. This substantial increase signals a robust confidence in the dollar's strength, potentially driven by expectations of favorable employment data that could influence Federal Reserve monetary policy.

• In contrast to the bullish sentiment surrounding the USD, the net long position for the euro has experienced a significant reduction and has now approached a nearly neutral stance. This shift suggests that traders are reassessing their outlook on the eurozone economy, possibly in light of recent economic indicators and geopolitical developments. Furthermore, the positioning data reveals that the Japanese yen (JPY), Canadian dollar (CAD), and Australian dollar (AUD) are all currently net short against the dollar. This collective bearish sentiment towards these currencies indicates a broader trend where investors are favoring the USD amidst uncertainties in other markets. For those seeking a more comprehensive understanding of these dynamics, we recommend consulting our IMM positioning tool, which provides detailed analytics and visualizations of market positions, enabling traders and analysts to gauge sentiment and make informed decisions.