CFTC COT report review (FX)

CFTC commitment of traders report was released on Friday (4th September) and cover positions up to Tuesday (1st September). 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.

Participants decreased net long position in US dollar by $2.53 billion to $24.3 billion. Net long declined by $15.8 billion in three consecutive weeks.

Shorts increased 

• Pound registered largest increase in net shorts, where shorts were increased by $1.4 billion to -$1.1 billion.
• New Zealand Dollar registered net short increase by $0.13 billion to -$0.525 billion.
• Euro shorts were increased by $0.01 billion to -$9.6 billion.

Shorts covered 

• Japanese Yen registered largest short covering by $2.5 billion to -$1.63 billion.
• Australian Dollar registered second largest decline in shorts by $0.63 billion to -$3.91 billion.
• Franc registered third largest decline in shorts by $0.57 billion to -$1.1 billion.
• Canadian Dollar registered decline in shorts by $0.32 billion to -$4.16 billion.
• New Zealand Dollar shorts were reduced by $0.265 billion to -$0.39 billion.