Tuesday, June 7, 2016

Weekly CFTC COT Forex Positioning:

According to calculations done by Reuters, the value of net bullish bets on the Greenback rose from $3.73 billion to $4.86 billion during the week ending on May 31, 2016. However, the latest Commitments of Traders forex positioning report from the CFTC shows that the Greenback had a more mixed performance.
Keep in mind that the numbers below show the net positioning of non-commercial forex traders against the U.S. dollar. If you’re feeling overwhelmed by all these figures, you might need to review our School of Pipsology lesson on How to Gauge Market Sentiment Using the COT Report in order to learn how to pinpoint potential forex market reversals
  • The Greenback had a more mixed performance.
  • Large speculators continued trimming their net bullish bets on the yen primarily by slashing their yen longs from 54,792 contracts to 46,964.
  • They were more bullish on the Loonie, though, and they showed this by pumping up their Loonie longs from 32,834 contracts to 38,753.
  • Large non-commercial forex traders are finally net bearish on the Aussie after almost three months of being net bullish. Interestingly enough, both Aussie bears and Aussie bulls were paring their positions, but it just so happens that far more bulls were getting out of their positions.
  • The Swissy looks like it’s about to follow the Aussie into the red, thanks mostly to Swissy bears increasing their short bets from 20,930 contracts to 24,162.
  • Net bullish bets on the Kiwi increased modestly, thanks to long bets on the Kiwi increasing from 30,414 to 31,919, offsetting the increase in Kiwi shorts from 25,838 to 26,415.  
  • Net short bets on the euro got reduced very slightly, but a look at how positioning went down showed that euro bulls and euro bears were both pumping up their positions, with euro longs increasing from 93,955 to 98,218 and euro shorts increasing from 131,850 to 135,872.
  • Net positioning on the pound was essentially unchanged, but both pound bulls and pound bears were actually cutting down on their positions, with pound longs getting trimmed from 38,577 to 36,546 while pound shorts got pared from 71,392 to 69,397.

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