News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how you can use it from @WVenketas here: https://t.co/E3EWOYTYNw https://t.co/aK98CEpfOH
  • Point 3 is not talked about enough. The bureaucratic - dare I say, Leviathan - in most universities is resulting in tuition prices skyrocketing without adding clear value to the students. https://t.co/WNZIORrfAk
  • Think #amzn will gap higher on Monday after Black Friday and the giant move to online shopping?
  • The exponential moving average (EMA) is a derivative of the simple moving average (SMA) indicator. Compared to the SMA, the EMA weighs recent price changes more heavily than later changes in price. Learn how to incorporate the EMA into your strategy here: https://t.co/w48c0xJXSX https://t.co/xFmhA7ZHqU
  • Traders in the Euro have a big decision to make this weekend: if EUR/USD hits 1.20, will it continue to advance, consolidate or fall back? Get your $EURUSD market update from @MartinSEssex here:https://t.co/8hAhguZcEA https://t.co/kwtatozp3z
  • The bullish engulfing candle is one of the forex market's most clear-cut price action signals for reversals and continuation. Learn more about this price action trading signal here: https://t.co/Yg6ecRZZNr https://t.co/9SdceNYUEK
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/imv2PnapzH
  • Defensive stocks have proven critically important when navigating stock market volatility. Find out what are the most defensive stocks here:https://t.co/TMcbMALtbw https://t.co/mmldxxEtsc
  • Dollar Index has broken major uptrend support and risks accelerated losses into the December open. Get your $USD technical analysis from @MBForex here:https://t.co/Txo8l8S1f1 https://t.co/YLVzP95JH8
  • The MACD is an indicator that uses exponential moving averages (EMA) to determine trend strength along with entry points based on crossovers. Find out how you can use the MACD as a buy/sell signal here: https://t.co/qxnP99uqTQ https://t.co/tGVqSZ2zK3
COT: British Pound Short Position Shrinks at Furious Pace

COT: British Pound Short Position Shrinks at Furious Pace

2017-09-25 12:06:00
Paul Robinson, Strategist
Share:

What’s inside:

  • Large speculators net-short position in the British pound was reduced by record amount
  • Euro net selling for a second straight week despite range, to continue if support breaks
  • Futures positioning profile charts for major currencies & markets

Confidence in trading is paramount, check out this guide – Building Confidence in Trading

Every Friday the CFTC releases the Commitment of Traders (COT) report, which shows traders’ positioning in the futures market as it stands for the week ending on Tuesday. Displayed in the table below are the net positions of large speculators (i.e. hedge funds, CTAs, etc.); the change in their positioning from the prior week and where the net position stands relative to its 52-week range.

COT: British Pound Short Position Shrinks at Furious Pace

Noteworthy developments

British pound – With the recent surge in sterling there has been a massive change in the net-short position held by large speculators – the largest on record. The nearly 36k contracts purchased brought their net-short position to its smallest level since they flipped from long to short back in November 2015. While still short just over 10k contracts that could soon flip to net-long in the next weekly report. GBPUSD is currently at an interesting spot from a resistance standpoint (post-‘Brexit gap/2014 trend-line) and could pull back from here, but if we continue to see cable move higher then look for large trend-followers to jump onboard in hopes of catching a broader trend higher.

COT: British Pound Short Position Shrinks at Furious Pace

GBPUSD: Weekly

COT: British Pound Short Position Shrinks at Furious Pace

Euro – The past month has brought range-bound trading conditions in the euro as it’s become trapped between the 2012 low and a trend-line rising up from April (see the weekly technical forecast for details.) Large speculators appear to be losing faith in the prevailing trend since earlier in the year as momentum stalls. They have reduced their net-long position by over 33k contracts in the past two weeks, with 23k of those contracts being shed in the most recent one-week period. The reported net position of 62.7k contracts is the smallest since the last week of June when large specs were holding 58.7k contracts. Should we see a breakdown below key support look for this figure to decline even further.

COT: British Pound Short Position Shrinks at Furious Pace

EURUSD: Daily

COT: British Pound Short Position Shrinks at Furious Pace

The COT report is a longer-term sentiment indicator – for a short-term view on sentiment, check out IG Client Sentiment data.

Other futures contracts and large speculator positioning:

COT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious PaceCOT: British Pound Short Position Shrinks at Furious Pace

Paul conducts webinars every week from Tuesday-Friday. See the Webinar Calendar for details, and the full line-up of all upcoming live events.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES