This summary highlights futures positions and changes made by speculators in forex, bonds and stocks up until last Tuesday, September 15. Risk appetite returned during the week with the S&P 500 Index rising by 2.1% following the biggest correction since the March pandemic low. A flurry of deal activity and continued speculation about the timing of a coronavirus vaccine together with better-than-expected Chinese data all helped give sentiment what looked like a temporary boost given how markets closed on Friday. The dollar traded lower by 0.4% with losses seen against all its peers with British pound being the most noticeable exception.
Despite broad dollar weakness, speculators still reduced bearish bets for a fourth consecutive week against all but one of the ten IMM currency futures tracked in this report. Overall the dollar short was cut by 4% to $32.4 billion and once again the biggest impact was another reduction of short position against a rangebound euro. From a record high three weeks ago, the euro long has since been cut by 16% to 179k lots or €22.3 billion.