Latest Commitment of Traders positions (FX) as at July 5th, 2016

CFTC commitment of traders report was released on Friday (8th July) and cover positions up to Tuesday (July 5th). COT report is not a complete presenter of entire market positions since the 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 in all currencies against Dollar, except for Yen, Franc, Aussie, and Loonie.

Shorts increased:

• Euro saw an increase in net short position but unlike last week it’s quite large. Speculators increased short positions by 13,393 contracts -75.3K contracts.
• The net short position in the sterling rose by 6,320 contracts to -49K contracts.

Shorts covered:

• Mexican Peso saw biggest short covering and in the tune of 20,470 contracts, which brought the net short position to -44.9K contracts.
• New Zealand dollar shorts were covered by 1,423 contracts and bringing net position to -1.4K contracts.

Longs increased:

• Japanese Yen saw the biggest increase in net long positions in the tune of 3,818 contracts, bringing net position to +63.6K contracts.
• Canadian dollar longs were increased by 3,568 contracts to +11.5K contracts.

Longs decreased:

• Swiss Franc is the only counter that saw a covering of net long positions and by 2,189 contracts to +8.7K contracts.

Position flipped to long:

• Australian dollar registered the biggest increase in net long positions and by 6,855 contracts making the net position flip from short to long and by +4.9K contracts.