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
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX - https://t.co/lxd5fZnn4H Mid-Week Market Check Up with IG on Wednesday at 9:30am EST - https://t.co/8SFBJxNZrA
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9Flsqcxo9 https://t.co/q0tVjDEr0v
  • The US 10-Year Treasury yield has advanced for four consecutive weeks for the longest such stretch since September 2018. Yet this isn't just a US issue. Yields are up globally. Perhaps most impressive is Japan's 10yr adv... https://t.co/78deo7rOa8 https://t.co/SjXYClItFC
  • Rising Treasury yields inspired a broad selling in global equities last week. The longer-term outlook remains positive however on the back of the reflationary theme, strong earnings and vaccine progress. Get your market update from @margaretyjy here: https://t.co/LLlhEpmJxI https://t.co/bJebULtjLG
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5cVYOn https://t.co/kuqShllQFp
  • Although the longer-term technical outlook for AUD remains skewed to the topside, recent developments suggest the commodity-sensitive currency could lose ground against USD and JPY. Get your market update from @DanielGMoss here: https://t.co/Rl1h8WdXwp https://t.co/49RKx86FzG
  • ECB policymakers were out in force last week, saying they were watching Eurozone government bond yields, but yields rose anyway, and that’s positive for $EURUSD and the Euro crosses. Get your market update from @MartinSEssex here: https://t.co/nJdh9dA1HM https://t.co/peLh7zTTiz
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/vs7ypHHwya
  • The GBP rally vs USD came to an abrupt end and reversal; this sets cable up for more selling in the week ahead. Get your market update from @PaulRobinsonFX here: https://t.co/Ee9PSppnd2 https://t.co/uaiCiEHBMs
  • What are some trading takeaways from 2020, as we jump into the new year? Find out with your free guide here: https://t.co/e7udCTJlmf #DailyfxGuides https://t.co/OXUgYIl2ru
EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off - COT Report

Justin McQueen, Analyst

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

  • US Dollar Shorts Ease Despite Weak Price Action
  • EUR/USD Sentiment Improves
  • Traders Caught Offside Amid Equity Exuberance

The Predictive Power of the COT Report

How to Read the CFTC Report

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

Source: CFTC, DailyFX (Covers up to June 2nd, released June 5th)

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

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off - COT Report

The latest reporting week sees investors marginally reduce their shorts in the US Dollar, despite the sizeable pullback in the greenback as the risk rally dominated price action. In turn, this signals that traders have been caught offside by the seemingly excessive exuberance seen in risk appetite.

The Euro saw net longs rise by over $1bln to $11.3bln as speculators continued to cut back on outright shorts. Sentiment remains supportive of the Euro as the recent recovery fund proposal and monetary policy stimulus propels the currency higher, which in turn has seen sovereign risks recede.

Positioning in the Pound has grown increasingly bearish as specs continue to sell into strength with net shorts at its largest since December 2019 amid a $1.1bln rise in bearish positions, marking a 6th consecutive weekly rise in shorts. However, given that GBP/USD has jumped to its best level since mid-March amid the all-round weaker USD in light of the risk rally, shorts appear to be feeling the squeeze, which can fuel a further rise in spot prices as investors cover positions. That said, we will be placing a close eye on EU-UK related headlines in the run-up to the transition period extension deadline (June 30th ), which may see rising Brexit risk premiums curb further upside in GBP.

Across commodity-linked currencies, positioning changes were relatively muted, however, speculators have remained bearish despite the sizeable appreciation in recent weeks. Although, with the risk-on rally potentially reaching somewhat stretched levels after the S&P 500 broke above 3200, while the Nasdaq 100 printed a fresh record high, the best days seem to be behind us for high-beta currencies.

Bullish bets in the Japanese Yen had been cut by $275mln led by a pick up in outright shorts, although, with JPY net longs remaining stretched (4yr highs), there is a risk of a return to 110.00 as specs continue to trim long positions.

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

US Dollar |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

EUR/USD |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

GBP/USD |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

USD/JPY |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

USD/CHF |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

USD/CAD |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

AUD/USD |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

NZD/USD |

EUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT ReportEUR/USD Bulls Boosted, US Dollar Shorts Ease Despite DXY Sell-Off   - COT Report

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.

DISCLOSURES