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
EUR/USD
Bearish
Oil - US Crude
Bullish
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
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
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
More View more
Real Time News
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
  • Top event risk for more than just the Dow and Dollar this week is the Wednesday #FOMC rate decision. What the markets expect sets the tone for how the event impacts price action. My run down of the week and Fed decision: https://www.dailyfx.com/forex/video/daily_news_report/2021/06/12/Dollar-and-SP-500-Breaks-Must-Abide-the-FOMC-Decision-This-Week.html https://t.co/Huvth4f706
US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

Justin McQueen, Analyst

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

  • USD Sentiment Softens
  • CAD Bulls Increase Ahead of BoC Meeting
  • AUD Positioning Flips to Net Short

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

In the week to April 20th, the latest CFTC data highlighted that USD shorts saw its largest increase since January, following a $2.2bln rise. That being said, total bearish bets on the greenback is still some way off the peak $35.6bln short position seen in January. This also coincided with the Euro seeing a pick up in net longs ($2.1bln), which somewhat matches the recent change in sentiment in the single currency as rising vaccination rates and narrowing bond spreads underpin.

Across the commodity currencies, investors boosted their net longs in the Canadian Dollar ahead of the BoC meeting, which had been led by fast money accounts (+$730mln). Following a hawkish meeting, where the BoC tapered QE and signalled that rate liftoff could take place as soon as 2022, the Canadian Dollar is once again edging towards its YTD peak against the USD. Elsewhere, the positioning in the Australian Dollar flipped to net short for the first time since February as long positions were liquidated, although as the Aussie’s terms of trade improve with iron and copper prices on the rise, the latter hitting a 9 year peak, downside appears limited for now.

Despite the correction in spot JPY, positioning in the safe-haven currency weakened slightly with net shorts rising by $170mln. For the direction in the Japanese Yen, the clearest guidance is likely to stem from US yields, which have been the key driver for the currency. Similarly, another safe haven where sentiment had deteriorated was the Swiss Franc as the currency slipped back into net-short, although overall position remains neutral.

As I noted last week, the Pound had been the largest bull bet in the G10 complex (adjusted for open interest) and as such, highlights the fact that a lot of good news has been priced into the currency, perhaps a reason why spot GBP has struggled in recent sessions. As UK growth is expected to propel higher, the focus now will be on the BoE’s reaction to the improving fundamentals of the UK economy.

Weekly FX Positioning

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

Source: CFTC, DailyFX (Covers up to April 20th, released April 23rd)

The Analytical Abilities of the COT Report

How to Read the CFTC Report

US Dollar Positioning

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

Source: Refinitiv, DailyFX

USD/CAD Positioning

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

Source: Refinitiv, DailyFX

AUD/USD Positioning

US Dollar Sentiment Softens, CAD Bulls Increase, AUD Flips Net Short - COT Report

Source: Refinitiv, DailyFX

If you would like to receive the full COT FX breakdown, contact IG.

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

DISCLOSURES