Currency Speculators drop their British Pound bets for 9th week to 30-week low

By InvestMacro | COT | Data Tables | COT Leaders | Downloads | COT Newsletter

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday October 24th and shows a quick view of how large market participants (for-profit speculators and commercial traders) were positioned in the futures markets. All currency positions are in direct relation to the US dollar where, for example, a bet for the euro is a bet that the euro will rise versus the dollar while a bet against the euro will be a bet that the euro will decline versus the dollar.

Weekly Speculator Changes led by US Dollar Index & Japanese Yen

The COT currency market speculator bets were slightly lower this week as five out of the eleven currency markets we cover had higher positioning while the other six markets had lower speculator contracts.

Leading the gains for the currency markets was the Japanese Yen (3,029 contracts) with the EuroFX (2,843 contracts), the Swiss Franc (1,983 contracts), the Brazilian Real (1,689 contracts) and the US Dollar Index (504 contracts) also showing positive weeks.

The currencies seeing declines in speculator bets on the week were the British Pound (-7,427 contracts), the New Zealand Dollar (-6,952 contracts), the Mexican Peso (-6,444 contracts), the Australian Dollar (-2,342 contracts), Bitcoin (-781 contracts) and the Canadian Dollar (-100 contracts) also registering lower bets on the week.

Speculators drop their British Pound bets for 9th week to 30-week low

Highlighting the COT currency’s data is the sliding trend in the speculator’s positioning of the British Pound Sterling. Large speculative Sterling positions fell this week by over -7,400 contracts and have now declined for nine consecutive weeks. The Sterling speculative level has dropped by a total of -77,743 contracts over these past nine weeks to the lowest level of the past 30-weeks, dating back to March 28th.

Relatively recently, the bullish bets for the Sterling (+63,729 contracts on July 18th) had risen to the highest level since July 31st of 2007, a span of almost exactly sixteen years. This marked the highest level for this year’s bullish bets but the speculator positions did a u-turn and have now fallen in twelve out of the fourteen weeks since then.

Hurting the pound’s outlook has been a weak economic landscape and the expectation that the Bank of England could be done with raising interest rates. The BOE, this year, has boosted the bank’s interest rate to the highest level since 2008 at 5.25 percent to fight high inflation (which has eased to 6.7 percent).

The Pound Sterling exchange rate against the US Dollar has been in a downtrend since hitting a high over the 1.3000 level in the middle of July. Since that 2023 summer ascension, the Sterling has been dropping sharply, falling through the 1.2500 exchange rate and is currently testing support in the 1.2050-1.2100 range.

---

 

---

Strength Scores led by Mexican Peso & Bitcoin

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that the Mexican Peso (62 percent) and the Bitcoin (60 percent) lead the currency markets this week. The US Dollar Index (58 percent), EuroFX (57 percent) and the British Pound (43 percent) came in as the next highest in the weekly strength scores.

On the downside, the Canadian Dollar (9 percent), the Japanese Yen (11 percent), the Australian Dollar (13 percent) and the Swiss Franc (15 percent) come in at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
US Dollar Index (57.7 percent) vs US Dollar Index previous week (56.9 percent)
EuroFX (56.6 percent) vs EuroFX previous week (55.4 percent)
British Pound Sterling (42.8 percent) vs British Pound Sterling previous week (48.0 percent)
Japanese Yen (10.9 percent) vs Japanese Yen previous week (9.1 percent)
Swiss Franc (15.2 percent) vs Swiss Franc previous week (9.8 percent)
Canadian Dollar (9.2 percent) vs Canadian Dollar previous week (9.3 percent)
Australian Dollar (12.7 percent) vs Australian Dollar previous week (14.8 percent)
New Zealand Dollar (21.9 percent) vs New Zealand Dollar previous week (40.0 percent)
Mexican Peso (62.2 percent) vs Mexican Peso previous week (66.2 percent)
Brazilian Real (42.4 percent) vs Brazilian Real previous week (40.2 percent)
Bitcoin (59.6 percent) vs Bitcoin previous week (71.3 percent)

 

US Dollar Index & New Zealand Dollar top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that the US Dollar Index (23 percent) and the New Zealand Dollar (5 percent) lead the past six weeks trends for the currencies. The Japanese Yen (-1 percent), the Australian Dollar (-3 percent) and the Canadian Dollar (-6 percent) are the next highest positive movers in the latest trends data.

The British Pound (-45 percent) leads the downside trend scores currently with the Bitcoin (-40 percent), Mexican Peso (-18 percent) and the Swiss Franc (-16 percent) following next with lower trend scores.

Strength Trend Statistics:
US Dollar Index (22.7 percent) vs US Dollar Index previous week (26.4 percent)
EuroFX (-11.9 percent) vs EuroFX previous week (-22.9 percent)
British Pound Sterling (-45.0 percent) vs British Pound Sterling previous week (-40.0 percent)
Japanese Yen (-0.5 percent) vs Japanese Yen previous week (-3.3 percent)
Swiss Franc (-15.8 percent) vs Swiss Franc previous week (-32.2 percent)
Canadian Dollar (-6.3 percent) vs Canadian Dollar previous week (-22.0 percent)
Australian Dollar (-3.2 percent) vs Australian Dollar previous week (2.6 percent)
New Zealand Dollar (4.6 percent) vs New Zealand Dollar previous week (21.1 percent)
Mexican Peso (-17.7 percent) vs Mexican Peso previous week (-14.2 percent)
Brazilian Real (-10.2 percent) vs Brazilian Real previous week (-13.3 percent)
Bitcoin (-40.4 percent) vs Bitcoin previous week (-25.8 percent)

---

Individual COT Forex Markets:

US Dollar Index Futures:

The US Dollar Index large speculator standing this week came in at a net position of 19,671 contracts in the data reported through Tuesday. This was a weekly advance of 504 contracts from the previous week which had a total of 19,167 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 57.7 percent. The commercials are Bearish with a score of 43.2 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 15.9 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

US DOLLAR INDEX Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	65.9	21.7	9.9
– Percent of Open Interest Shorts:	19.8	69.8	7.9
– Net Position:	19,671	-20,531	860
– Gross Longs:	28,130	9,255	4,240
– Gross Shorts:	8,459	29,786	3,380
– Long to Short Ratio:	3.3 to 1	0.3 to 1	1.3 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	57.7	43.2	15.9
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	22.7	-20.3	-9.9

 

---

Euro Currency Futures:

The Euro Currency large speculator standing this week came in at a net position of 85,253 contracts in the data reported through Tuesday. This was a weekly increase of 2,843 contracts from the previous week which had a total of 82,410 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 56.6 percent. The commercials are Bearish with a score of 48.8 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 15.3 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

EURO Currency Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	30.7	56.4	11.4
– Percent of Open Interest Shorts:	18.5	71.8	8.2
– Net Position:	85,253	-107,996	22,743
– Gross Longs:	215,569	396,435	80,233
– Gross Shorts:	130,316	504,431	57,490
– Long to Short Ratio:	1.7 to 1	0.8 to 1	1.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	56.6	48.8	15.3
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-11.9	15.7	-22.6

 

---

British Pound Sterling Futures:

The British Pound Sterling large speculator standing this week came in at a net position of -18,636 contracts in the data reported through Tuesday. This was a weekly decline of -7,427 contracts from the previous week which had a total of -11,209 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 42.8 percent. The commercials are Bullish with a score of 61.0 percent and the small traders (not shown in chart) are Bearish with a score of 41.0 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BRITISH POUND Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	28.8	56.9	11.4
– Percent of Open Interest Shorts:	36.8	45.2	15.1
– Net Position:	-18,636	27,337	-8,701
– Gross Longs:	67,119	132,744	26,540
– Gross Shorts:	85,755	105,407	35,241
– Long to Short Ratio:	0.8 to 1	1.3 to 1	0.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	42.8	61.0	41.0
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-45.0	43.9	-26.9

 

---

Japanese Yen Futures:

The Japanese Yen large speculator standing this week came in at a net position of -99,629 contracts in the data reported through Tuesday. This was a weekly gain of 3,029 contracts from the previous week which had a total of -102,658 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 10.9 percent. The commercials are Bullish-Extreme with a score of 86.8 percent and the small traders (not shown in chart) are Bearish with a score of 42.9 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

JAPANESE YEN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	11.9	71.4	14.3
– Percent of Open Interest Shorts:	50.1	31.3	16.3
– Net Position:	-99,629	104,809	-5,180
– Gross Longs:	30,964	186,381	37,435
– Gross Shorts:	130,593	81,572	42,615
– Long to Short Ratio:	0.2 to 1	2.3 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	10.9	86.8	42.9
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-0.5	-0.9	5.6

 

---

Swiss Franc Futures:

The Swiss Franc large speculator standing this week came in at a net position of -15,095 contracts in the data reported through Tuesday. This was a weekly gain of 1,983 contracts from the previous week which had a total of -17,078 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 15.2 percent. The commercials are Bullish-Extreme with a score of 88.7 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.8 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

SWISS FRANC Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	16.5	67.0	16.4
– Percent of Open Interest Shorts:	42.0	21.2	36.7
– Net Position:	-15,095	27,136	-12,041
– Gross Longs:	9,807	39,724	9,692
– Gross Shorts:	24,902	12,588	21,733
– Long to Short Ratio:	0.4 to 1	3.2 to 1	0.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	15.2	88.7	17.8
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-15.8	26.8	-32.5

 

---

Canadian Dollar Futures:

The Canadian Dollar large speculator standing this week came in at a net position of -48,639 contracts in the data reported through Tuesday. This was a weekly lowering of -100 contracts from the previous week which had a total of -48,539 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 9.2 percent. The commercials are Bullish-Extreme with a score of 92.6 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 11.8 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

CANADIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	12.1	68.8	17.2
– Percent of Open Interest Shorts:	38.4	39.8	19.9
– Net Position:	-48,639	53,600	-4,961
– Gross Longs:	22,326	127,101	31,815
– Gross Shorts:	70,965	73,501	36,776
– Long to Short Ratio:	0.3 to 1	1.7 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	9.2	92.6	11.8
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-6.3	2.9	5.4

 

---

Australian Dollar Futures:

The Australian Dollar large speculator standing this week came in at a net position of -83,081 contracts in the data reported through Tuesday. This was a weekly fall of -2,342 contracts from the previous week which had a total of -80,739 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 12.7 percent. The commercials are Bullish-Extreme with a score of 91.6 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 14.0 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

AUSTRALIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	14.4	73.3	9.6
– Percent of Open Interest Shorts:	57.1	22.6	17.7
– Net Position:	-83,081	98,853	-15,772
– Gross Longs:	28,018	142,753	18,606
– Gross Shorts:	111,099	43,900	34,378
– Long to Short Ratio:	0.3 to 1	3.3 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	12.7	91.6	14.0
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-3.2	2.9	-0.8

 

---

New Zealand Dollar Futures:

The New Zealand Dollar large speculator standing this week came in at a net position of -12,851 contracts in the data reported through Tuesday. This was a weekly lowering of -6,952 contracts from the previous week which had a total of -5,899 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 21.9 percent. The commercials are Bullish-Extreme with a score of 81.3 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 11.9 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

NEW ZEALAND DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	23.5	69.4	5.1
– Percent of Open Interest Shorts:	45.9	41.3	10.7
– Net Position:	-12,851	16,051	-3,200
– Gross Longs:	13,448	39,718	2,942
– Gross Shorts:	26,299	23,667	6,142
– Long to Short Ratio:	0.5 to 1	1.7 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	21.9	81.3	11.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	4.6	-2.7	-6.7

 

---

Mexican Peso Futures:

The Mexican Peso large speculator standing this week came in at a net position of 37,861 contracts in the data reported through Tuesday. This was a weekly lowering of -6,444 contracts from the previous week which had a total of 44,305 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 62.2 percent. The commercials are Bearish with a score of 37.4 percent and the small traders (not shown in chart) are Bearish with a score of 26.0 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

MEXICAN PESO Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	28.0	68.4	3.0
– Percent of Open Interest Shorts:	8.5	89.1	1.8
– Net Position:	37,861	-40,188	2,327
– Gross Longs:	54,446	133,105	5,771
– Gross Shorts:	16,585	173,293	3,444
– Long to Short Ratio:	3.3 to 1	0.8 to 1	1.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	62.2	37.4	26.0
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-17.7	18.6	-14.6

 

---

Brazilian Real Futures:

The Brazilian Real large speculator standing this week came in at a net position of 5,185 contracts in the data reported through Tuesday. This was a weekly boost of 1,689 contracts from the previous week which had a total of 3,496 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 42.4 percent. The commercials are Bullish with a score of 56.2 percent and the small traders (not shown in chart) are Bullish with a score of 50.4 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BRAZIL REAL Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	39.3	52.4	6.8
– Percent of Open Interest Shorts:	29.2	65.8	3.5
– Net Position:	5,185	-6,903	1,718
– Gross Longs:	20,203	26,973	3,505
– Gross Shorts:	15,018	33,876	1,787
– Long to Short Ratio:	1.3 to 1	0.8 to 1	2.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	42.4	56.2	50.4
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-10.2	10.2	-2.5

 

---

Bitcoin Futures:

The Bitcoin large speculator standing this week came in at a net position of -454 contracts in the data reported through Tuesday. This was a weekly decline of -781 contracts from the previous week which had a total of 327 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 59.6 percent. The commercials are Bullish with a score of 57.3 percent and the small traders (not shown in chart) are Bearish with a score of 33.2 percent.

Price Trend-Following Model: Weak Downtrend (Possible Trend Change)

Our weekly trend-following model classifies the current market price position as: Weak Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BITCOIN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	75.3	3.3	8.2
– Percent of Open Interest Shorts:	77.6	5.5	3.7
– Net Position:	-454	-438	892
– Gross Longs:	14,814	641	1,617
– Gross Shorts:	15,268	1,079	725
– Long to Short Ratio:	1.0 to 1	0.6 to 1	2.2 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	59.6	57.3	33.2
– Strength Index Reading (3 Year Range):	Bullish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-40.4	57.3	13.2

 

---

Article By InvestMacro – Receive our weekly COT Reports by Email

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting).See CFTC criteria here.

All information and opinions on this website and contained in this article are for general informational purposes only and do not constitute investment advice.