CAD Longs Cut, GBP Remains Bearish, JPY Longs Extended - COT Report
COT Report: Analysis and Talking Points
Source: CFTC, DailyFX (Covers up to August 13th, released August 16th)
CAD Longs Cut, GBP Remains Bearish, JPY Longs Extended- COT Update
The latest CFTC positioning data shows US Dollar saw net longs cut by $950mln to $16.6bln vs. G10 currencies with speculators demanding safe-havens amid the rising concerns surrounding the global economic outlook. Investors continued to pile into the Japanese Yen with net longs boosted by $1.65bln to total $2.9bln, largest bullish bet on the Yen since the back-end of 2016.
Elsewhere, broad selling had been observed across the risk sensitive currencies as investors cut their long exposure to the Canadian Dollar by $746mln, while bearish bets on AUD and NZD has been increased by $525mln and $114mln respectively.
Modest short covering in GBP amid a $588mln reduction in bearish bets. However, this may be somewhat temporary given the ongoing risks tied to Brexit uncertainty. The Euro saw net shorts lifted slightly, which could continue in the run up to the next ECB meeting.
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--- Written by Justin McQueen, Market Analyst
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