COT report review (FX)

CFTC commitment of traders report was released on Friday (28^th August) and cover positions up to Tuesday (25^th August). 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.

Kindly note figures are rounded to next decimal.

Key highlights -

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

Participants decreased net long position in US dollar by $7.96 billion to $26.8 billion. Net long declined by $13.3 billion in two consecutive weeks.

Shorts increased -

• Australian Dollar registered largest increase in net shorts, where shorts were increased by $0.88 billion to -$4.54 billion.
• Mexican Peso registered second largest shorts increase by $0.57 billion to -$2.41 billion.
• France registered net short increase by $0.41 billion to -$1.68 billion.

Shorts covered -

• Japanese Yen registered largest short covering by $4.95 billion to -$4.11 billion.
• Euro registered second largest decline in shorts by $3.27 billion to -$9.51 billion.
• Pound registered third largest decline in shorts by $0.71 billion to +$0.32 billion.
• Canadian Dollar registered decline in shorts by $0.64 billion to -$4.48 billion.
• New Zealand Dollar shorts were reduced by $0.265 billion to -$0.39 billion.