COT report review (FX)

CFTC commitment of traders report was released on Friday (8^th September) and cover positions up to Tuesday (11^th 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 $0.66 billion to $24.93 billion. First increase in USD longs in three weeks.

Shorts increased -

• Euro registered largest increase in net shorts, where shorts were increased by $1.78 billion to -$11.4 billion.
• Pound registered second largest net short increase by $0.62 billion to -$1.7 billion.
• New Zealand Dollar registered net short increase by $0.225 billion to -$0.75 billion.

Shorts covered -

• Japanese Yen registered largest short covering by $0.93 billion to -$0.7 billion.
• Canadian Dollar registered second largest decline in shorts by $0.47 billion to -$3.68 billion.
• Franc registered third largest decline in shorts by $0.22 billion to -$0.88 billion.
• Australian Dollar registered decline in shorts by $0.17 billion to -$3.74 billion.
• Mexican Peso shorts were reduced by $0.16 billion to -$2.11 billion.