COT report review (FX)

CFTC commitment of traders report was released on Friday (25th July) and cover positions up to Tuesday (21^st July). COT report is not a complete presenter of entire market positions, since future market is relatively smaller compared to Spot FX market. Nevertheless, it presents crucial picture on how key participants are looking at future moves.

Key highlights -

Market participants are net short on all currencies except Franc against dollar.

Participants increased net long position in US dollar by $2.44 billion to $33.37 billion.

Shorts increased -

• Largest short addition was registered in Yen by $1.5 billion to -$6.3 billion.
• Euro registered second largest short addition by $0.61 billion to -$15.44 billion.
• Australian dollar registered third largest short increase by $0.53 billion to -$3 billion.
• Canadian dollar shorts were increased moderately by $0.16 billion to -$3.365 billion.
• Mexican peso shorts were increased by $223 million to -$2.54 billion.

Shorts covered -

• Pound registered largest short covering by $0.28 billion to -$2.1 billion.
• New Zealand Dollar shorts were covered by $0.26 billion to -$1.06 billion

Longs increased -

• Swiss Franc longs were increased by $38 million to net $0.45 billion.