CFTC report from July 8 covered information available on July 2

According to the CFTC report, market participants keep net long speculative positions against the US dollar on most of the major currencies. The largest net short positions observed on the Japanese yen and the Australian dollar, followed by the European currencies - the euro and the British pound. In this case, the recent changes in the positioning occurred exclusively in favor of the US dollar, but the greatest increase in net short positions was registered on the European currency.

As a whole thing, the current positioning is in line with our medium-term forecasts. We expect a large-scale strengthening on an American currency in the second half of the year. Particularly, short positions on the Japanese yen, the euro and the British pound seem to us especially interesting from a strategic point of view.

The net short position on the Canadian dollar rose by 0.5 billion USD, to -1.5 billion USD. The sentiment remains bearish.

Australian dollar keeps its significant net short position vs. the U.S. dollar. Last week, its volume rose to -6.5 billion USD. The Australian dollar is the second-largest net short positioner, behind only the Japanese yen.

After a short break, market reoccupied the net short position on the Euro that was -5.5 billion USD last week. The bearish sentiment is dominating.

The net short position on the British pound rose to -2.9 billion USD. The sentiment is bearish.

The net position of the Swiss franc remains close to complete balance. The sentiment is neutral.

The yen holds the leadership by the largest net short position vs. the U.S. dollar. It rose to -8.8 billion USD last week. The sentiment remains bearish.