Skip to Content
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. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
US Dollar Shorts Unwind, GBP/USD Outlook Growing More Bearish   - COT Report

US Dollar Shorts Unwind, GBP/USD Outlook Growing More Bearish - COT Report

What's on this page

US Dollar, EUR/USD, GBP/USD, COT Report –Analysis

  • US Dollar Shorts Continue Unwind
  • GBP/USD Outlook Grows More Bearish
  • Investor Positioning Little Change, Highlighting Choppy Price Action

The Predictive Power of the COT Report

How to Read the CFTC Report

Source: CFTC, DailyFX (Covers up to May 12th, released May 15th)

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Justin McQueen
Improve your trading with IG Client Sentiment Data
Get My Guide

US Dollar Shorts Unwind, GBP/USD Growing More Bearish - COT Report

In the week ending May 12th, speculators had reduced their net shorts in the US Dollar by a marginal $144mln against G10 currencies. In turn, this reflects that recent choppy price action across the FX space with the majority of currencies trading in relatively tight ranges.

Once again, investors raised their net shorts in the Pound with overall bearish bets totalling $1bln. However, given that GBP is now faced with EU-UK trade talks reaching an impasse ahead of the transition period deadline (June 30th), short positioning is marginal at best and thus somewhat under-pricing political risks. While BoE officials have been talking up the prospects of NIRP reaching the UK.

Antipodeans (AUD, NZD) were net sold by non-commercials with rising US-China tensions beginning to weigh on high-beta currencies. Alongside this, Australia is also caught up in a trade spat with China, which in turn could see tariffs placed on Australia. Elsewhere, the outlook for NZD remains notably weak, particularly after last week’s dovish RBNZ meeting, in which the central bank had been more explicit on negative rates while also opening up the door to direct FX intervention.

Across the safe-havens, the Swiss Franc saw a slight easing of its bullish bets with the currency net sold by $144mln as further CHF upside remains capped, while JPY saw a slight increase in net longs.

The Euro saw a marginal increase in bullish positioning (+$257mln), however, leveraged funds and real money flows had been net sellers of the currency. In light of the soft macro backdrop and concerns over Europe's stability, risks remain tilted to the downside in EUR/USD.

Please add a description for the image.

US Dollar |








For a more in-depth analysis on FX, check out the FX Forecast

--- Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX

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