Speculators stay (very) bearish on the dollar

These are the main highlights of the CFTC Positioning Report for the week ended on January 26th:

Net longs in USD climbed to 3-week highs. The sentiment around the dollar remains sour, as the Federal Reserve reinforced its ultra-accommodative stance and prospects of extra US fiscal stimulus remain firm.
The speculative community reiterated its positive view on EUR, pushing net longs to the highest level since mid-October 2020. The neutral/upbeat message from the ECB plus solid growth prospects in the region (in spite of the slow vaccine rollout) continued to lend support to the European currency.
Net longs in JPY receded to levels last seen in December following the better perspective in the risk complex and the retracement in US yields.
Traders scaled back their positions in crude oil and pushed net longs to multi-month lows. Demand fears have re-emerged on the back of fresh lockdown measures in China and the relentless advance of the pandemic in Europe (helped by the slow pace of the vaccination campaign).

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