Latest Commitment of Traders positions (FX) as of December 27th, 2016

CFTC commitment of traders report was released on Friday (30th December) and cover positions up to Tuesday (27th December). 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 the dollar.

Shorts increased:

• The Japanese yen registered the biggest increase in net short positions among its peers last week. The net-short positions increased by 11,560 contracts to -87K contracts.
• The net short position in the New Zealand dollar rose by 4,048 contracts to -11K contracts.

Shorts decreased:

• The Canadian dollar saw the biggest decrease in the net-short positions, where net-shorts decreased by 10,156 contracts -1.6K contracts.
• The net short position in the euro declined by 8,637 contracts to -69.4K contracts. It’s a third consecutive weekly decline.
• The net shorts in the Mexican peso got covered by 5,024 contracts to -61.7K contracts.
• The net short position in the pound sterling declined by 2,251 contracts to -57.1K contracts.

Net position shifted from long to short:

• The net positions in Swiss franc shifted from long to short as traders increased net short positions by 17,201 contracts, pushing the net position to 10.1K contracts. The net position had shifted to long in the previous week only.
• The net long positions declined in such a way that the net position shifted from long to short. The net long position declined by 5,451 contracts to -1.5K contracts.