COT Report: Analysis and Talking Points
- USD Net Longs Ease Amid Demand for Safe-Havens
- JPY Longs Rising Towards Extreme Levels
- EUR/USD Shorts Slashed
The Predictive Power of the CoT Report
Source: CFTC, DailyFX (Covers up to August 20th, released August 23rd)
JPY Bulls Approaching Extreme Levels, EUR/USD Shorts Slashed - COT Update
The latest CFTC positioning data showed that investors had once again cut their US Dollar long exposure, dropping to $14.498bln vs G10 currencies. Much of this had been down to the sizeable reduction in Euro net shorts (-$1.244bln) as gross shorts had been cut by 7,431 contracts. Elsewhere, investors continued to seek safe-havens amid the increasingly uncertainty economic environment, as such, Japanese Yen bullish bets rose by $768mln to $3.666bln, highest since November 2016, which Swiss Franc net shorts had been scaled back.
GBP positioning had been relatively unchanged with bearish bets easing slightly to $7.028bln, nonetheless, market participants remain the most bearish on the Pound in the G10 FX space. Risk sensitive currencies (AUD, CAD, NZD) also saw little movement.
US DOLLAR
EURUSD
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--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
