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.

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
More View more
Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

Justin McQueen, Strategist

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

  • Euro Bulls Head for the Exit as US Dollar Faces a Short Squeeze
  • Negative Concoction for the Pound as Positioning Moves Back to Neutral
  • Australian Dollar Flips Bullish at the Wrong Time

The Predictive Power of the COT Report

How to Read the CFTC Report

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

Source: CFTC, DailyFX (Covers up to September 15th, released September 18th)

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

In the latest reporting week, speculators have more meaningfully reduced their US Dollar shorts, which were cut by $1.89bln against G10 currencies. As risk sentiment looks to remain fragile heading into the US election, particularly with a resurgence of COVID cases, the US Dollar may stand to gain going forward, with a reversal likely to be exacerbated by a squeeze in bearish bets.

Positioning in the Pound moved back to neutral territory after net longs were slashed by $848mln following a jump in outright shorts. As GBP faces a poisonous concoction of negative BoE rate chatter, heightened Brexit uncertainty and risks of renewed lockdown measures amid an increase in COVID cases, I am a not convinced that GBP/USD has established a floor and thus risks a deeper setback.

The Euro saw a sizeable cut in net longs of $2.5mln, however, given that positioning remains stretched, conditions appear ripe for a greater retracement in the Euro, allowing for a greater clear out of net longs. Elsewhere, the Australian Dollar flipped to net long following a $1.3bln boost, prompted by a short squeeze. That said, in light of the current backdrop, this may be the wrong time to flip bullish.

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

US Dollar |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

EUR/USD |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

GBP/USD |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

USD/JPY |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

USD/CHF |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

USD/CAD |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

AUD/USD |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

NZD/USD |

Euro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT ReportEuro Bulls Exiting, GBP/USD Negatives Rise, AUD/USD Flips Bullish - COT Report

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

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

DISCLOSURES