What does the weekly speculative report reveal?

Financial markets have witnessed a clear shift towards the appetite for risk after announcing a temporary trade truce between the United States and China that extends for 90 days. This step led to a wide recovery in stock and commodity indicators, while the US dollar recorded strong gains against most major currencies, supported by the high returns of American bonds.
However, despite these positive developments, the data of the crucial contracts showed that the hedge funds are still moving with caution, especially in light of doubts about the sustainability of this commercial truce.

Currency Markets: The strength of the dollar does not convince speculators

The US dollar recorded noticeable gains against all the eight major currencies, especially against the Japanese yen and the Swiss franc.
However, speculators have not shown a major shift in their negative positions towards the dollar.
The net purchasing centers settled at $ 16.6 billion.
The euro recorded 9,100 contracts, while the Canadian dollar contracts, Japanese yen and the British pound continued.

Goods and Energy: A selective rise driven by cautious optimism

Brent crude witnessed a strong purchase wave and increased by 5.5% to the highest level in 5 weeks.
On the other hand, the sales of West Texas crude continued for the second week, reflecting a variation in the confidence of the speculators.

• Precious metals

Gold decreased by 5% due to the low demand for safe havens.
Nevertheless, the sales remained limited, reflecting the reach of the net long centers its lowest level in 14 months.
Silver and platinum avoid sharp decline and only moderate sale.

Copper contracts have witnessed new purchases on the Comics Stock Exchange, despite the decline in prices locally, with the support of improving global demand expectations.

Agricultural commodities: caution continues despite the signs of recovery in some contracts

Cocoa jumped by 10% driven by fears related to production in Ivory Coast.
Soybeans and soybean oil are increasingly purchasing attention, supported by improved demand prospects.
In contrast, the pressure on wheat and corn contracts continued, as the net short centers reached the highest seasonal level in 6 years.

Be careful

Oli Hansen, head of the commodity strategy at Saksu Bank, said that despite the general improvement in the markets after the announcement of the commercial truce, the hedge fund positions indicate a cautious and selective approach, which reflects doubts about the future of trade relations between the United States and China. The continuation or collapse of this truce will have a significant impact on investor movements in the coming weeks.