JPY Bulls Approaching Extreme Levels, EUR/USD Shorts Slashed - COT Report

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

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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

GBPUSD

USDJPY

USDCHF

USDCAD

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NZDUSD

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--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

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