2 June 2025 | Other

CFTC data indicate increased bets on yen appreciation among asset managers

CFTC data indicate increased bets on yen appreciation among asset managers

Bloomberg highlights market participants' uncertainty about the Japanese currency's outlook. Earlier last week, the yen approached a one-month high but then fell sharply as Japanese authorities attempted to stem a rout in the bond market. Another factor contributing to investor uncertainty was dollar volatility, the news agency notes.

Despite this, asset managers remain optimistic about the yen. According to the Commodity Futures Trading Commission (CFTC), their bullish bets on the Japanese currency rose by 3,218 contracts in the week ending May 27.

Yet, CFTC data also reveal that leveraged hedge funds cut their net long positions in the yen by 12,183 contracts during the same period. This divergence has fueled confusion among traders.

On Monday, Japan's national currency rose slightly by 0.3% due to escalating global trade tensions. The situation worsened after the US president's recent announcement of his plans to double steel and aluminum import tariffs and tighten duties against China, Bloomberg reports.

Elena Berseneva MarketCheese
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