CFTC Positioning report: JPY net shorts receded to one-year lows

These are the main highlights of the CFTC Positioning report for the week ended on June 18:

-       Speculators trimmed their short positions to the lowest level since June 16 2018 on the Japanese safe haven on the back of rising geopolitical jitters exclusively on rising US-Iran effervescence. In addition, the likeliness of rate cuts by the Fed has also spurred the preference for riskier assets, all in detriment of JPY.

-       The speculative community pushed USD net longs to fresh multi-month tops ahead of the FOMC meeting. The subsequent dovish tilt by the FOMC should impact on the next report, as the event was after the cut-off date.

-       EUR net shorts dropped to the lowest level since February 5 despite the ECB showed a clear will to return to rate cuts or QE following its monetary policy meeting.