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Japanese Yen Continues to Slide as Bank of Japan Disappoints Markets

The USD/JPY pair surged to 149.58 on Wednesday, marking its fourth consecutive day of gains as the Japanese yen extended its decline. The Bank of Japan’s (BoJ) latest policy decision failed to inspire confidence, leaving investors underwhelmed and further weakening the yen.

Key factors driving USD/JPY movement

As expected, the Bank of Japan maintained its benchmark interest rate at 0.5% while reiterating its forecast that the Japanese economy will grow above its potential level. However, the central bank also acknowledged emerging signs of economic fragility, adopting a cautious tone in its outlook. Policymakers emphasised the need to gather and analyse more data before making significant moves, particularly in light of global economic risks.

A key concern is the potential impact of US tariff hikes, which could weigh heavily on Japan’s export-driven economy. Investors are now closely monitoring comments from BoJ Governor Kazuo Ueda for further insights into the central bank’s strategy and future policy direction.

Recent data has painted a mixed picture of Japan’s economic health. The monthly Reuters Tankan survey revealed growing pessimism among Japanese manufacturers in March, citing concerns over US trade policies and China’s slowing economy. On a brighter note, Japan’s trade balance shifted to a surplus in February, driven by robust export growth. However, this improvement has done little to strengthen the yen amid broader market concerns.

Technical analysis of USD/JPY

On the H4 chart, USD/JPY is forming a bullish wave structure, targeting 150.20. Upon reaching this level, a corrective pullback to 149.20 is possible, likely establishing a consolidation range near the current highs. A breakout above this range could signal further upward momentum, with the next target at 151.80. This scenario is supported by the MACD indicator, with its signal line remaining above zero and trending upwards.

The H1 chart shows USD/JPY developing a growth wave toward 150.20, representing the midpoint of the third wave in the current structure. A consolidation range is expected to form around 149.62, with an upward breakout potentially opening the path to 151.80. The Stochastic oscillator corroborates this outlook, with its signal line above 50 pointing upward.

Conclusion

The Japanese yen’s decline reflects market disappointment with the Bank of Japan’s cautious stance and lack of decisive action. While Japan’s trade balance has shown improvement, concerns over global economic risks and domestic manufacturing sentiment continue to weigh on the currency. From a technical perspective, USD/JPY remains in a bullish trend, with key resistance levels at 150.20 and 151.80. Traders should monitor BoJ Governor Ueda’s statements and upcoming economic data for further clues on the yen’s trajectory.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

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13 Mar

EUR/USD holds onto hopes of further growth as investors assess the risks

By RoboForex Analytical Department

The EUR/USD pair is trading near 1.0887 on Thursday as investors cautiously evaluate the impact of escalating global trade tensions on the economy and consumer behaviour. Despite the uncertainty, the currency pair shows resilience, with market participants closely monitoring key developments.

Key market factors affecting EUR/USD

The primary focus remains on the ongoing global trade war, which has intensified following recent announcements by US President Donald Trump. Trump has pledged to impose additional tariffs on trading partners in response to the EU and Canada’s retaliatory measures triggered by earlier US tariffs on steel and aluminium imports.

Further adding to the uncertainty, Trump reaffirmed his commitment to imposing additional retaliatory duties scheduled for April. This has intensified concerns about potential spillover effects on global markets and economic stability.

On the economic data front, US consumer inflation figures for February relieved the currency market. The Consumer Price Index (CPI) rose by 0.2% month-on-month, falling short of the expected 0.3% increase. Year-over-year, inflation eased to 2.8%, down from 3.0% in January. However, the full impact of recent tariffs is yet to materialise, leaving markets cautious about potential inflationary pressures in the coming months.

Investors are now focusing on the Federal Reserve’s upcoming policy meeting next week. Market consensus suggests that the Fed will hold interest rates steady, but all eyes will be on the updated economic forecasts and any signals regarding future monetary policy. The decision could play a pivotal role in shaping the near-term trajectory of the EUR/USD pair.

Technical analysis of EUR/USD

On the H4 chart, the EUR/USD pair recently completed a growth wave, reaching a high of 1.0944. Currently, the market is consolidating near the top of this wave. A downward breakout from this range is anticipated, potentially initiating the first wave of decline toward the 1.0533 level. Following this, a corrective rebound to 1.0740 could occur. This scenario is supported by the MACD indicator, whose signal line remains above zero but is trending downward, signalling weakening momentum.

On the H1 chart, the pair is forming a consolidation range around 1.0830, extending up to 1.0944. A decline towards the lower boundary of this range is expected, potentially leading to a breakout and a drop to 1.0750. A subsequent retest of 1.0830 (from below) may follow before a further decline to 1.0533. The Stochastic oscillator reinforces this bearish outlook, with its signal line below the 50 mark and trending downward toward 20.

Conclusion

The EUR/USD pair remains precarious as investors navigate the dual challenges of escalating trade tensions and impending central bank decisions. While technical indicators point to a bearish near-term outlook, market sentiment remains highly sensitive to trade negotiations and macroeconomic data developments. Traders should remain alert to potential volatility and be prepared to adapt their strategies as new information emerges.

Disclaimer

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12 Mar

Japanese yen declines: temporary pause amid strong long-term outlook

By RoboForex Analytical Department

USD/JPY climbed to 148.19 on Wednesday, marking its second consecutive session of gains after touching a low of 146.53, its weakest level since 4 October 2024. While this movement partly resembles a technical rebound, broader market conditions appear to shift, influencing the yen’s trajectory.

Key market factors affecting USD/JPY

Bank of Japan (BoJ) Governor Kazuo Ueda stated that it is natural for bond yields to reflect market expectations regarding short-term interest rates. He downplayed the significance of any divergence between the BoJ’s stance and market sentiment.

Despite this, financial markets continue to bet on the BoJ sticking to its interest rate hike strategy for 2025. Japan’s latest inflation data further strengthens this view.

The Consumer Price Index (CPI) for January 2025 surged to 4.0%, the highest since January 2023. The primary driver was food prices, which spiked 7.8% y/y, while rising electricity and gas prices also contributed to overall inflation. Meanwhile, core inflation hit a 19-month high at 3.2%.

Given this inflationary environment, the BoJ remains pressured to maintain its tightening cycle, a strong supporting factor for the yen over the longer term.

Technical analysis of USD/JPY

On the H4 chart, USD/JPY is developing a growth wave targeting 148.38. After reaching this level, a correction towards 147.34 may follow, outlining the consolidation range at the recent lows. If the price breaks upwards, the pair could extend gains towards 150.20, the next key resistance level. A correction to 148.38 could then occur. The MACD indicator supports this outlook, with its signal line below zero but pointing strictly upwards, indicating bullish momentum.

On the H1 chart, the pair is forming a growth wave towards 148.38, marking the first key target. A potential pullback to 147.34 may follow before a renewed push higher towards 149.40, the next local target. The Stochastic oscillator confirms this scenario, with its signal line above 50 and trending upwards, suggesting continued buying pressure.

Conclusion

USD/JPY is experiencing a short-term rebound, with market sentiment driving the pair higher amid shifting rate expectations. However, the BoJ’s stance and Japan’s strong inflation figures provide longer-term support for the yen, keeping the broader outlook mixed.

In the near term, 148.38 remains a key resistance level, with the potential for further gains towards 150.20 if bullish momentum persists. A corrective pullback to 147.34 could provide a buying opportunity before the next upward wave towards 149.40. Market participants will closely watch economic developments and BoJ policy signals to determine the yen’s next move.

Disclaimer

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09 Mar

Brazilian Real Speculator bets jump, Yen bets hit new record high & Euro bets gain

By InvestMacro

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 March 4th 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 Brazilian Real & Japanese Yen

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

Leading the gains for the currency markets was the Brazilian Real (40,789 contracts) with the Japanese Yen (37,671 contracts), the EuroFX (15,319 contracts), the British Pound (14,111 contracts), the Swiss Franc (1,685 contracts) and Bitcoin (410 contracts) also showing positive weeks.

The currencies seeing declines in speculator bets on the week were the Mexican Peso (-9,274 contracts), the Canadian Dollar (-5,864 contracts), the Australian Dollar (-2,653 contracts), the New Zealand Dollar (-2,056 contracts) and with the US Dollar Index (-994 contracts) also registering lower bets on the week.

FX Roundup: Brazilian Real bets jump, Japanese Yen bets hit new record high, Euro bets rise

Highlighting the COT currency’s data this week is the sharp gains in some of the major currencies versus the US Dollar.

Brazilian Real: The Brazilian currency positioning saw a huge jump by over +40,000 net contracts this week. The net speculator position has now risen in four out of the past five weeks and is in bullish territory after a 39-week streak in bearish territory from May 2024 until January 28th 2025.

The BRL exchange rate remains near the lowest levels on record versus the US Dollar that were reached in December but there has been recent momentum as the BRL has gained in eight out of the past ten weeks.

Japanese Yen: The Japanese yen speculator positions rose sharply again this week with a second consecutive weekly gain by more than +35,000 contracts. Overall, the yen speculator bets have surged higher for seven straight weeks and by a total of +163,062 contracts in that time-frame. This has pushed the current net position to a new all-time record high level of +133,651 contracts this week and breaking last week’s record.

The JPY exchange rate continues to see positive movement as the futures price climbs and the USDJPY broke down through the 150 barrier on its way towards 145.00. The USDJPY is currently trading at 147.55 and has JPY improvement in six out the past eight weeks.

Euro: The Euro speculator position has steadily improved over the past few months and has increased for three straight weeks. The Euro bets have gained by a total of +59,458 contracts over the past nine weeks and brings the current net position to a total of -10,106 contracts. This is the lowest bearish position since November and contracts could go positive in the upcoming week as the Euro has been back in favor due to dollar weakness and policy announcements.

The EUR exchange rate had a huge week with a jump by almost 5 percent. The EURUSD was trading at 1.0200 in the middle of January and with the recent surges, the EUR closed out the week over the 1.0830 exchange level.

Currencies Net Speculators Leaderboard

Legend: Weekly Speculators Change | Speculators Current Net Position | Speculators Strength Score compared to last 3-Years (0-100 range)

Strength Scores led by Japanese Yen & Brazilian Real

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 Japanese Yen (100 percent), the Brazilian Real (93 percent) and Bitcoin (65 percent) lead the currency markets this week. The British Pound (44 percent) and the Australian Dollar (42 percent) come in as the next highest in the weekly strength scores.

On the downside, the New Zealand Dollar (0 percent) comes in at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent). The next lowest strength scores are the Canadian Dollar (24 percent), the Swiss Franc (24 percent) and the EuroFX (25 percent).

3-Year Strength Statistics:
US Dollar Index (37.2 percent) vs US Dollar Index previous week (39.3 percent)
EuroFX (24.9 percent) vs EuroFX previous week (19.1 percent)
British Pound Sterling (44.5 percent) vs British Pound Sterling previous week (38.1 percent)
Japanese Yen (100.0 percent) vs Japanese Yen previous week (88.1 percent)
Swiss Franc (24.3 percent) vs Swiss Franc previous week (20.9 percent)
Canadian Dollar (23.5 percent) vs Canadian Dollar previous week (26.2 percent)
Australian Dollar (42.1 percent) vs Australian Dollar previous week (44.0 percent)
New Zealand Dollar (0.0 percent) vs New Zealand Dollar previous week (2.4 percent)
Mexican Peso (38.7 percent) vs Mexican Peso previous week (43.4 percent)
Brazilian Real (93.3 percent) vs Brazilian Real previous week (54.5 percent)
Bitcoin (64.7 percent) vs Bitcoin previous week (55.7 percent)

Japanese Yen & Brazilian Real top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that the Brazilian Real (74 percent) and the Japanese Yen (47 percent) lead the past six weeks trends for the currencies. The EuroFX (20 percent), the Australian Dollar (16 percent) and the British Pound Sterling (12 percent) are the next highest positive movers in the 3-Year trends data.

The New Zealand Dollar (-5 percent) leads the downside trend scores currently with Bitcoin (-3 percent) following next with lower trend scores.

3-Year Strength Trends:
US Dollar Index (-0.3 percent) vs US Dollar Index previous week (6.2 percent)
EuroFX (19.9 percent) vs EuroFX previous week (13.3 percent)
British Pound Sterling (12.1 percent) vs British Pound Sterling previous week (1.8 percent)
Japanese Yen (46.7 percent) vs Japanese Yen previous week (39.4 percent)
Swiss Franc (8.2 percent) vs Swiss Franc previous week (-1.5 percent)
Canadian Dollar (3.1 percent) vs Canadian Dollar previous week (13.1 percent)
Australian Dollar (16.4 percent) vs Australian Dollar previous week (22.7 percent)
New Zealand Dollar (-5.3 percent) vs New Zealand Dollar previous week (-1.9 percent)
Mexican Peso (10.7 percent) vs Mexican Peso previous week (11.6 percent)
Brazilian Real (73.5 percent) vs Brazilian Real previous week (35.4 percent)
Bitcoin (-2.7 percent) vs Bitcoin previous week (-24.7 percent)

Individual COT Forex Markets:

US Dollar Index Futures:

The US Dollar Index large speculator standing this week resulted in a net position of 14,738 contracts in the data reported through Tuesday. This was a weekly decline of -994 contracts from the previous week which had a total of 15,732 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 37.2 percent. The commercials are Bullish with a score of 64.4 percent and the small traders (not shown in chart) are Bearish with a score of 29.4 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend.

US DOLLAR INDEX Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	71.1	17.1	7.4
– Percent of Open Interest Shorts:	33.4	55.6	6.6
– Net Position:	14,738	-15,048	310
– Gross Longs:	27,785	6,675	2,886
– Gross Shorts:	13,047	21,723	2,576
– Long to Short Ratio:	2.1 to 1	0.3 to 1	1.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	37.2	64.4	29.4
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-0.3	2.9	-15.5

Euro Currency Futures:

The Euro Currency large speculator standing this week resulted in a net position of -10,106 contracts in the data reported through Tuesday. This was a weekly increase of 15,319 contracts from the previous week which had a total of -25,425 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 24.9 percent. The commercials are Bullish with a score of 74.7 percent and the small traders (not shown in chart) are Bearish with a score of 38.5 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

EURO Currency Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	27.1	55.1	12.2
– Percent of Open Interest Shorts:	28.6	57.9	7.9
– Net Position:	-10,106	-19,259	29,365
– Gross Longs:	185,223	376,930	83,321
– Gross Shorts:	195,329	396,189	53,956
– Long to Short Ratio:	0.9 to 1	1.0 to 1	1.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	24.9	74.7	38.5
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	19.9	-21.7	24.8

British Pound Sterling Futures:

The British Pound Sterling large speculator standing this week resulted in a net position of 18,574 contracts in the data reported through Tuesday. This was a weekly lift of 14,111 contracts from the previous week which had a total of 4,463 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 44.5 percent. The commercials are Bullish with a score of 55.9 percent and the small traders (not shown in chart) are Bullish with a score of 52.0 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

BRITISH POUND Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	40.8	40.6	13.8
– Percent of Open Interest Shorts:	31.5	47.4	16.2
– Net Position:	18,574	-13,710	-4,864
– Gross Longs:	81,866	81,410	27,706
– Gross Shorts:	63,292	95,120	32,570
– Long to Short Ratio:	1.3 to 1	0.9 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	44.5	55.9	52.0
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	12.1	-16.9	32.9

Japanese Yen Futures:

The Japanese Yen large speculator standing this week resulted in a net position of 133,651 contracts in the data reported through Tuesday. This was a weekly increase of 37,671 contracts from the previous week which had a total of 95,980 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-Extreme with a score of 100.0 percent. The commercials are Bearish-Extreme with a score of 0.0 percent and the small traders (not shown in chart) are Bullish-Extreme with a score of 93.4 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend.

JAPANESE YEN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	51.9	28.8	12.7
– Percent of Open Interest Shorts:	14.2	70.0	9.3
– Net Position:	133,651	-145,919	12,268
– Gross Longs:	183,955	102,081	45,054
– Gross Shorts:	50,304	248,000	32,786
– Long to Short Ratio:	3.7 to 1	0.4 to 1	1.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	100.0	0.0	93.4
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	46.7	-45.5	15.6

Swiss Franc Futures:

The Swiss Franc large speculator standing this week resulted in a net position of -37,775 contracts in the data reported through Tuesday. This was a weekly boost of 1,685 contracts from the previous week which had a total of -39,460 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 24.3 percent. The commercials are Bullish with a score of 77.8 percent and the small traders (not shown in chart) are Bearish with a score of 35.1 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

SWISS FRANC Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	5.7	81.0	12.3
– Percent of Open Interest Shorts:	44.7	31.5	22.9
– Net Position:	-37,775	48,071	-10,296
– Gross Longs:	5,572	78,617	11,964
– Gross Shorts:	43,347	30,546	22,260
– Long to Short Ratio:	0.1 to 1	2.6 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	24.3	77.8	35.1
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	8.2	-15.8	23.8

Canadian Dollar Futures:

The Canadian Dollar large speculator standing this week resulted in a net position of -143,770 contracts in the data reported through Tuesday. This was a weekly decrease of -5,864 contracts from the previous week which had a total of -137,906 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 23.5 percent. The commercials are Bullish with a score of 79.9 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 10.7 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

CANADIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	6.5	79.5	7.2
– Percent of Open Interest Shorts:	48.8	33.9	10.5
– Net Position:	-143,770	154,980	-11,210
– Gross Longs:	22,175	270,391	24,406
– Gross Shorts:	165,945	115,411	35,616
– Long to Short Ratio:	0.1 to 1	2.3 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	23.5	79.9	10.7
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	3.1	-3.3	2.8

Australian Dollar Futures:

The Australian Dollar large speculator standing this week resulted in a net position of -48,233 contracts in the data reported through Tuesday. This was a weekly decline of -2,653 contracts from the previous week which had a total of -45,580 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 42.1 percent. The commercials are Bullish with a score of 63.9 percent and the small traders (not shown in chart) are Bearish with a score of 25.9 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

AUSTRALIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	27.3	55.2	12.2
– Percent of Open Interest Shorts:	51.1	27.0	16.5
– Net Position:	-48,233	57,029	-8,796
– Gross Longs:	55,151	111,644	24,680
– Gross Shorts:	103,384	54,615	33,476
– Long to Short Ratio:	0.5 to 1	2.0 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	42.1	63.9	25.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	16.4	-13.6	-0.8

New Zealand Dollar Futures:

The New Zealand Dollar large speculator standing this week resulted in a net position of -55,765 contracts in the data reported through Tuesday. This was a weekly lowering of -2,056 contracts from the previous week which had a total of -53,709 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 0.0 percent. The commercials are Bullish-Extreme with a score of 100.0 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.3 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

NEW ZEALAND DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	17.9	78.0	3.3
– Percent of Open Interest Shorts:	74.0	19.0	6.2
– Net Position:	-55,765	58,610	-2,845
– Gross Longs:	17,843	77,550	3,282
– Gross Shorts:	73,608	18,940	6,127
– Long to Short Ratio:	0.2 to 1	4.1 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	0.0	100.0	17.3
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-5.3	5.4	-2.9

Mexican Peso Futures:

The Mexican Peso large speculator standing this week resulted in a net position of 19,456 contracts in the data reported through Tuesday. This was a weekly decrease of -9,274 contracts from the previous week which had a total of 28,730 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 38.7 percent. The commercials are Bullish with a score of 65.3 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 10.8 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

MEXICAN PESO Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	45.3	49.7	2.4
– Percent of Open Interest Shorts:	31.9	61.6	3.9
– Net Position:	19,456	-17,305	-2,151
– Gross Longs:	65,679	72,102	3,500
– Gross Shorts:	46,223	89,407	5,651
– Long to Short Ratio:	1.4 to 1	0.8 to 1	0.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	38.7	65.3	10.8
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	10.7	-10.1	-7.1

Brazilian Real Futures:

The Brazilian Real large speculator standing this week was a net position of 43,167 contracts in the data reported through Tuesday. This was a weekly gain of 40,789 contracts from the previous week which had a total of 2,378 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-Extreme with a score of 93.3 percent. The commercials are Bearish-Extreme with a score of 7.8 percent and the small traders (not shown in chart) are Bearish with a score of 24.5 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

BRAZIL REAL Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	69.8	27.2	2.7
– Percent of Open Interest Shorts:	29.0	68.6	2.1
– Net Position:	43,167	-43,814	647
– Gross Longs:	73,933	28,866	2,899
– Gross Shorts:	30,766	72,680	2,252
– Long to Short Ratio:	2.4 to 1	0.4 to 1	1.3 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	93.3	7.8	24.5
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	73.5	-74.4	10.2

Bitcoin Futures:

The Bitcoin large speculator standing this week resulted in a net position of 614 contracts in the data reported through Tuesday. This was a weekly boost of 410 contracts from the previous week which had a total of 204 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 64.7 percent. The commercials are Bullish with a score of 50.6 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 3.0 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend.

BITCOIN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	86.7	3.3	4.2
– Percent of Open Interest Shorts:	84.6	5.2	4.6
– Net Position:	614	-516	-98
– Gross Longs:	24,469	937	1,186
– Gross Shorts:	23,855	1,453	1,284
– Long to Short Ratio:	1.0 to 1	0.6 to 1	0.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	64.7	50.6	3.0
– Strength Index Reading (3 Year Range):	Bullish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-2.7	12.2	-27.2

Article By InvestMacro – Receive our weekly COT Newsletter

*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.

COT Updates Financial News Forex and Currency News

09 Mar

Speculator Extremes: Japanese Yen, Brent, NZ Dollar & Cotton lead Bullish & Bearish Positions

By InvestMacro

The latest update for the weekly Commitment of Traders (COT) report was released by the Commodity Futures Trading Commission (CFTC) on Friday for data ending on March 4th.

This weekly Extreme Positions report highlights the Most Bullish and Most Bearish Positions for the speculator category. Extreme positioning in these markets can foreshadow strong moves in the underlying market.

To signify an extreme position, we use the Strength Index (also known as the COT Index) of each instrument, a common method of measuring COT data. The Strength Index is simply a comparison of current trader positions against the range of positions over the previous 3 years. We use over 80 percent as extremely bullish and under 20 percent as extremely bearish. (Compare Strength Index scores across all markets in the data table or cot leaders table)

Here Are This Week’s Most Bullish Speculator Positions:

Japanese Yen

The Japanese Yen speculator position comes in as the most bullish extreme standing this week as sentiment has shifted significantly for the yen in a quick period of time. The Japanese Yen speculator level is currently at a 100.0 percent or a maximum score of its 3-year range.

The six-week trend for the percent strength change in score totaled 46.7 this week. The overall net speculator position was a total of 133,651 net contracts this week (a new record high) with a huge boost of 37,671 contract in the weekly speculator bets.

Speculators or Non-Commercials Notes:
Speculators, classified as non-commercial traders by the CFTC, are made up of large commodity funds, hedge funds and other significant for-profit participants. The Specs are generally regarded as trend-followers in their behavior towards price action – net speculator bets and prices tend to go in the same directions. These traders often look to buy when prices are rising and sell when prices are falling. To illustrate this point, many times speculator contracts can be found at their most extremes (bullish or bearish) when prices are also close to their highest or lowest levels.
These extreme levels can be dangerous for the large speculators as the trade is most crowded, there is less trading ammunition still sitting on the sidelines to push the trend further and prices have moved a significant distance. When the trend becomes exhausted, some speculators take profits while others look to also exit positions when prices fail to continue in the same direction. This process usually plays out over many months to years and can ultimately create a reverse effect where prices start to fall and speculators start a process of selling when prices are falling.

Brent Oil

The Brent Oil speculator position comes next in the extreme standings this week. The Brent Oil speculator level is now at a 100.0 percent score of its 3-year range.

The six-week trend for the percent strength score was 20.0 this week. The speculator position registered -5,400 net contracts this week with a weekly jump by 23,056 contracts in speculator bets.

Brazil Real

The Brazil Real speculator position comes in third this week in the extreme standings. The Brazil Real speculator level now resides at a 93.3 percent score of its 3-year range.

The six-week trend for the speculator strength score came in at 73.5 this week. The overall speculator position was 43,167 net contracts this week with a giant gain of 40,789 contracts in the weekly speculator bets.

Steel

The Steel speculator position comes up number four in the extreme standings this week. The Steel speculator level is at a 91.9 percent score of its 3-year range.

The six-week trend for the speculator strength score totaled a change of 22.5 this week. The overall speculator position was 3,340 net contracts this week despite a change of -557 contracts in the speculator bets.

Ultra U.S. Treasury Bonds

The Ultra U.S. Treasury Bonds speculator position rounds out the top five in this week’s bullish extreme standings. The Ultra U.S. Treasury Bonds speculator level sits at a 85.8 percent score of its 3-year range. The six-week trend for the speculator strength score was -0.7 this week.

The speculator position was -231,904 net contracts this week with a dip of -4,169 contracts in the weekly speculator bets.

This Week’s Most Bearish Speculator Positions:

New Zealand Dollar

The New Zealand Dollar speculator position comes in as the most bearish extreme standing this week. The New Zealand Dollar speculator level is at a 0.0 percent or at the minimum score of its 3-year range.

The six-week trend for the speculator strength score was -5.3 this week. The overall speculator position was -55,765 net contracts this week with a decline of -2,056 contracts in the speculator bets.

Cotton

The Cotton speculator position comes in next for the most bearish extreme standing on the week. The Cotton speculator level is at a 0.0 percent score of its 3-year range.

The six-week trend for the speculator strength score was -13.5 this week. The speculator position was -62,137 net contracts this week with a drop of -18,651 contracts in the weekly speculator bets.

Soybean Meal

The Soybean Meal speculator position comes in as third most bearish extreme standing of the week. The Soybean Meal speculator level resides at a 4.5 percent score of its 3-year range.

The six-week trend for the speculator strength score was -11.2 this week. The overall speculator position was -55,904 net contracts this week with a decrease by -19,792 contracts in the speculator bets.

WTI Crude Oil

The WTI Crude Oil speculator position comes in as this week’s fourth most bearish extreme standing. The WTI Crude Oil speculator level is at a 7.8 percent score of its 3-year range.

The six-week trend for the speculator strength score was -68.0 this week. The speculator position was 154,841 net contracts this week with a reduction of -16,357 contracts in the weekly speculator bets.

5-Year Bond

Finally, the 5-Year Bond speculator position comes in as the fifth most bearish extreme standing for this week. The 5-Year Bond speculator level is at a 9.8 percent score of its 3-year range.

The six-week trend for the speculator strength score was -0.1 this week. The speculator position was -1,798,361 net contracts this week with a decline by -172,588 contracts in the weekly speculator bets.

Article By InvestMacro – Receive our weekly COT Newsletter

COT Updates Financial News Forex and Currency News

07 Mar

EUR/USD holds firm as the US dollar ends the week with losses

By RoboForex Analytical Department

EUR/USD is trading near 1.0806 on Friday, maintaining its position despite failing to extend its gains further. Investors are focused on the upcoming US employment data for February, which will be released later today.

Key factors influencing EUR/USD

The US dollar briefly found support after President Donald Trump temporarily excluded some Canadian and Mexican goods from the 25% tariffs imposed earlier this week. This move raised hopes for further trade concessions, easing concerns slightly.

However, despite this development, the USD is on track to close the first week of March with a loss of over 3%. The escalating trade war has increased fears of negative economic consequences for the US, particularly given the heavy reliance of US companies on free trade.

Meanwhile, the euro gained support from expectations of increased government spending in Germany and other European nations, particularly in defence investments.

The European Central Bank (ECB) cut its interest rate as expected, reducing it to 2.65% per annum. This move was widely anticipated and did not create market surprises.

Technical analysis of EUR/USD

On the H4 chart, EUR/USD completed a growth wave to 1.0850 and is now forming a consolidation range around 1.0800. A downward breakout from this range is expected, potentially leading to a decline towards 1.0600. After reaching this level, a correction towards 1.0700 could follow. The MACD indicator supports this scenario, with its signal line above zero but turning downward, indicating potential weakness.

On the H1 chart, EUR/USD is consolidating around 1.0800. A move down to 1.0730 is expected, followed by a possible retest of 1.0800 from below before another decline towards 1.0600. If this trend continues, the next target could be 1.0400. The Stochastic oscillator confirms this outlook, with its signal line above 80 and preparing to decline towards 20, indicating a potential bearish shift.

Conclusion

EUR/USD remains elevated but faces increasing downside risks, particularly if US job data strengthens the dollar. While trade tensions and ECB policy support the euro, technical indicators suggest a potential decline towards 1.0600, with further downside possible. The US employment report will be a critical driver for the next major move in the pair.

Disclaimer

Financial News Forex and Currency News

02 Mar

Currency Speculators push Japanese Yen Bets Up to New Record High

By InvestMacro

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 February 25th 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 Japanese Yen & Euro

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

Leading the gains for the currency markets was the Japanese Yen (35,411 contracts) with the EuroFX (25,995 contracts), the Mexican Peso (14,057 contracts), the Australian Dollar (11,143 contracts), the Canadian Dollar (6,737 contracts), the British Pound Sterling (5,042 contracts), the Brazilian Real (1,438 contracts) and Bitcoin (571 contracts) also recording positive weeks.

The currencies seeing declines in speculator bets on the week were the New Zealand Dollar (-1,546 contracts), the US Dollar Index (-1,036 contracts) and with the Swiss Franc (-1,101 contracts) also registering lower bets on the week.

Currency Speculators push Japanese Yen bets up to New Record High

Highlighting the COT currency’s data this week is the continued boost in bullish bets for the Japanese yen speculators.

Japanese yen speculator positions have continued their remarkable run of bullish bets since January and increased for a sixth consecutive weekly gain. This week’s rise in speculator bets was by over +35,000 contracts and marks the fifth time out of the past six weeks positions have gained by over +10,000 contracts.

Overall, the last six weeks have added a total of +125,391 contracts to the net positioning and has brought the total net position to a new all-time record high of +95,980 contracts. The previous record high was +71,870 contracts that took place in 2016 and the previous high (before 2016) was in March of 2008.

Japanese 10-Year Bond Yields

The yen exchange rate, despite the record high sentiment, has not exactly shared the same upside as of yet. The yen futures dipped this week by approximately -1 percent but had risen in five out of the previous six weeks. The yen exchange versus the US Dollar remains close to the lowest levels since the 1990’s at the 0.0066 futures price level and the USDJPY currency pair still holds above the major level of 150.00.

The Bank of Japan has raised its interest rate this year to the highest level in 17 years with some forecasts expecting the BOJ to increase it at least one more time. The Japanese 10-year bond yield has been rising strongly as well with the recent yield of 1.45 percent marking the highest level since 2009.

The strengthening speculator sentiment could signal a shift in the views toward the Japanese currency and which could take the currency’s fortunes some time to build upon. It could also possibly be a false start in which an unwinding of the speculator bets would once again put downward pressure on the JPY exchange rate into new multi-decade depths. Either way, this development bears watching.

Currencies Net Speculators Leaderboard

Legend: Weekly Speculators Change | Speculators Current Net Position | Speculators Strength Score compared to last 3-Years (0-100 range)

Strength Scores led by Japanese Yen

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 Japanese Yen (100 percent) leads the currency markets this week. Bitcoin (56 percent) and the Brazilian Real (54 percent) come in as the next highest in the weekly strength scores.

On the downside, the New Zealand Dollar (1 percent) and the EuroFX (19 percent) come in at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent). The next lowest strength scores are the Swiss Franc (21 percent) and the Canadian Dollar (26 percent).

3-Year Strength Statistics:
US Dollar Index (39.3 percent) vs US Dollar Index previous week (41.4 percent)
EuroFX (19.1 percent) vs EuroFX previous week (9.2 percent)
British Pound Sterling (38.1 percent) vs British Pound Sterling previous week (35.9 percent)
Japanese Yen (100.0 percent) vs Japanese Yen previous week (87.4 percent)
Swiss Franc (20.9 percent) vs Swiss Franc previous week (23.2 percent)
Canadian Dollar (26.2 percent) vs Canadian Dollar previous week (23.1 percent)
Australian Dollar (44.0 percent) vs Australian Dollar previous week (36.0 percent)
New Zealand Dollar (1.1 percent) vs New Zealand Dollar previous week (2.9 percent)
Mexican Peso (43.4 percent) vs Mexican Peso previous week (36.2 percent)
Brazilian Real (54.3 percent) vs Brazilian Real previous week (53.0 percent)
Bitcoin (55.7 percent) vs Bitcoin previous week (43.3 percent)

Japanese Yen & Brazilian Real top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that the Japanese Yen (45 percent) and the Brazilian Real (35 percent) lead the past six weeks trends for the currencies. The Australian Dollar (23 percent), the EuroFX (13 percent) and the Canadian Dollar (13 percent) are the next highest positive movers in the 3-Year trends data.

Bitcoin (-25 percent) leads the downside trend scores currently with the New Zealand Dollar (-2 percent) and the Swiss Franc (-2 percent) following next with lower trend scores.

3-Year Strength Trends:
US Dollar Index (6.2 percent) vs US Dollar Index previous week (16.8 percent)
EuroFX (13.3 percent) vs EuroFX previous week (4.8 percent)
British Pound Sterling (1.8 percent) vs British Pound Sterling previous week (-6.8 percent)
Japanese Yen (44.8 percent) vs Japanese Yen previous week (28.8 percent)
Swiss Franc (-1.5 percent) vs Swiss Franc previous week (-1.0 percent)
Canadian Dollar (13.1 percent) vs Canadian Dollar previous week (15.2 percent)
Australian Dollar (22.7 percent) vs Australian Dollar previous week (11.9 percent)
New Zealand Dollar (-1.9 percent) vs New Zealand Dollar previous week (2.9 percent)
Mexican Peso (11.6 percent) vs Mexican Peso previous week (1.2 percent)
Brazilian Real (35.4 percent) vs Brazilian Real previous week (32.2 percent)
Bitcoin (-24.7 percent) vs Bitcoin previous week (-34.0 percent)

Individual COT Forex Markets:

US Dollar Index Futures:

The US Dollar Index large speculator standing this week recorded a net position of 15,732 contracts in the data reported through Tuesday. This was a weekly decrease of -1,036 contracts from the previous week which had a total of 16,768 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 39.3 percent. The commercials are Bullish with a score of 62.8 percent and the small traders (not shown in chart) are Bearish with a score of 27.3 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend.

US DOLLAR INDEX Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	68.1	17.2	7.4
– Percent of Open Interest Shorts:	26.7	58.9	7.0
– Net Position:	15,732	-15,861	129
– Gross Longs:	25,906	6,543	2,808
– Gross Shorts:	10,174	22,404	2,679
– Long to Short Ratio:	2.5 to 1	0.3 to 1	1.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	39.3	62.8	27.3
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	6.2	-3.1	-16.6

Euro Currency Futures:

The Euro Currency large speculator standing this week recorded a net position of -25,425 contracts in the data reported through Tuesday. This was a weekly rise of 25,995 contracts from the previous week which had a total of -51,420 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 19.1 percent. The commercials are Bullish-Extreme with a score of 81.0 percent and the small traders (not shown in chart) are Bearish with a score of 31.1 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

EURO Currency Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	27.7	55.0	11.9
– Percent of Open Interest Shorts:	31.6	55.1	8.0
– Net Position:	-25,425	-640	26,065
– Gross Longs:	182,699	362,477	78,634
– Gross Shorts:	208,124	363,117	52,569
– Long to Short Ratio:	0.9 to 1	1.0 to 1	1.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	19.1	81.0	31.1
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	13.3	-16.7	31.1

British Pound Sterling Futures:

The British Pound Sterling large speculator standing this week recorded a net position of 4,463 contracts in the data reported through Tuesday. This was a weekly increase of 5,042 contracts from the previous week which had a total of -579 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 38.1 percent. The commercials are Bullish with a score of 63.8 percent and the small traders (not shown in chart) are Bearish with a score of 39.8 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

BRITISH POUND Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	37.0	47.5	12.5
– Percent of Open Interest Shorts:	34.7	44.4	17.8
– Net Position:	4,463	6,186	-10,649
– Gross Longs:	74,089	95,277	24,992
– Gross Shorts:	69,626	89,091	35,641
– Long to Short Ratio:	1.1 to 1	1.1 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	38.1	63.8	39.8
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	1.8	-3.5	10.0

Japanese Yen Futures:

The Japanese Yen large speculator standing this week recorded a net position of 95,980 contracts in the data reported through Tuesday. This was a weekly rise of 35,411 contracts from the previous week which had a total of 60,569 net contracts.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

JAPANESE YEN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	52.2	28.3	13.9
– Percent of Open Interest Shorts:	23.0	61.4	10.0
– Net Position:	95,980	-108,945	12,965
– Gross Longs:	171,751	93,060	45,737
– Gross Shorts:	75,771	202,005	32,772
– Long to Short Ratio:	2.3 to 1	0.5 to 1	1.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	100.0	0.0	95.1
– Strength Index Reading (3 Year Range):	Bullish-Extreme	Bearish-Extreme	Bullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	44.8	-46.1	35.3

Swiss Franc Futures:

The Swiss Franc large speculator standing this week recorded a net position of -39,460 contracts in the data reported through Tuesday. This was a weekly decline of -1,101 contracts from the previous week which had a total of -38,359 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 20.9 percent. The commercials are Bullish-Extreme with a score of 82.2 percent and the small traders (not shown in chart) are Bearish with a score of 30.8 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

SWISS FRANC Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	5.2	84.2	10.5
– Percent of Open Interest Shorts:	45.8	32.0	22.2
– Net Position:	-39,460	50,769	-11,309
– Gross Longs:	5,019	81,861	10,235
– Gross Shorts:	44,479	31,092	21,544
– Long to Short Ratio:	0.1 to 1	2.6 to 1	0.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	20.9	82.2	30.8
– Strength Index Reading (3 Year Range):	Bearish	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-1.5	-9.1	26.8

Canadian Dollar Futures:

The Canadian Dollar large speculator standing this week recorded a net position of -137,906 contracts in the data reported through Tuesday. This was a weekly gain of 6,737 contracts from the previous week which had a total of -144,643 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 26.2 percent. The commercials are Bullish with a score of 74.9 percent and the small traders (not shown in chart) are Bearish with a score of 26.9 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

CANADIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	6.4	81.7	8.7
– Percent of Open Interest Shorts:	49.6	37.0	10.2
– Net Position:	-137,906	142,821	-4,915
– Gross Longs:	20,523	261,075	27,768
– Gross Shorts:	158,429	118,254	32,683
– Long to Short Ratio:	0.1 to 1	2.2 to 1	0.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	26.2	74.9	26.9
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	13.1	-15.9	24.2

Australian Dollar Futures:

The Australian Dollar large speculator standing this week recorded a net position of -45,580 contracts in the data reported through Tuesday. This was a weekly advance of 11,143 contracts from the previous week which had a total of -56,723 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 44.0 percent. The commercials are Bullish with a score of 61.1 percent and the small traders (not shown in chart) are Bearish with a score of 31.3 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

AUSTRALIAN DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	27.4	56.5	13.0
– Percent of Open Interest Shorts:	51.9	28.4	16.7
– Net Position:	-45,580	52,332	-6,752
– Gross Longs:	50,873	105,108	24,241
– Gross Shorts:	96,453	52,776	30,993
– Long to Short Ratio:	0.5 to 1	2.0 to 1	0.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	44.0	61.1	31.3
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	22.7	-20.8	7.7

New Zealand Dollar Futures:

The New Zealand Dollar large speculator standing this week recorded a net position of -53,709 contracts in the data reported through Tuesday. This was a weekly lowering of -1,546 contracts from the previous week which had a total of -52,163 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 1.1 percent. The commercials are Bullish-Extreme with a score of 97.7 percent and the small traders (not shown in chart) are Bearish with a score of 36.5 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

NEW ZEALAND DOLLAR Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	15.1	79.8	4.4
– Percent of Open Interest Shorts:	74.6	18.9	5.9
– Net Position:	-53,709	55,044	-1,335
– Gross Longs:	13,628	72,094	3,958
– Gross Shorts:	67,337	17,050	5,293
– Long to Short Ratio:	0.2 to 1	4.2 to 1	0.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	1.1	97.7	36.5
– Strength Index Reading (3 Year Range):	Bearish-Extreme	Bullish-Extreme	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-1.9	0.5	15.5

Mexican Peso Futures:

The Mexican Peso large speculator standing this week recorded a net position of 28,730 contracts in the data reported through Tuesday. This was a weekly boost of 14,057 contracts from the previous week which had a total of 14,673 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 43.4 percent. The commercials are Bullish with a score of 60.7 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 8.7 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend.

MEXICAN PESO Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	46.7	49.4	2.3
– Percent of Open Interest Shorts:	27.6	66.8	3.9
– Net Position:	28,730	-26,207	-2,523
– Gross Longs:	70,337	74,354	3,415
– Gross Shorts:	41,607	100,561	5,938
– Long to Short Ratio:	1.7 to 1	0.7 to 1	0.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	43.4	60.7	8.7
– Strength Index Reading (3 Year Range):	Bearish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	11.6	-11.5	-1.6

Brazilian Real Futures:

The Brazilian Real large speculator standing this week recorded a net position of 2,378 contracts in the data reported through Tuesday. This was a weekly boost of 1,438 contracts from the previous week which had a total of 940 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 54.3 percent. The commercials are Bearish with a score of 45.5 percent and the small traders (not shown in chart) are Bearish with a score of 29.8 percent.

Price Trend-Following Model: Weak Downtrend

Our weekly trend-following model classifies the current market price position as: Weak Downtrend.

BRAZIL REAL Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	41.9	51.1	2.6
– Percent of Open Interest Shorts:	40.3	53.7	1.6
– Net Position:	2,378	-3,962	1,584
– Gross Longs:	63,879	77,856	3,952
– Gross Shorts:	61,501	81,818	2,368
– Long to Short Ratio:	1.0 to 1	1.0 to 1	1.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	54.3	45.5	29.8
– Strength Index Reading (3 Year Range):	Bullish	Bearish	Bearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	35.4	-37.5	15.7

Bitcoin Futures:

The Bitcoin large speculator standing this week recorded a net position of 204 contracts in the data reported through Tuesday. This was a weekly advance of 571 contracts from the previous week which had a total of -367 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 55.7 percent. The commercials are Bullish with a score of 56.9 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 14.5 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend.

BITCOIN Statistics	SPECULATORS	COMMERCIALS	SMALL TRADERS
– Percent of Open Interest Longs:	80.3	4.6	4.6
– Percent of Open Interest Shorts:	79.6	5.5	4.4
– Net Position:	204	-261	57
– Gross Longs:	25,737	1,489	1,480
– Gross Shorts:	25,533	1,750	1,423
– Long to Short Ratio:	1.0 to 1	0.9 to 1	1.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):	55.7	56.9	14.5
– Strength Index Reading (3 Year Range):	Bullish	Bullish	Bearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:	-24.7	31.4	-9.5

Article By InvestMacro – Receive our weekly COT Newsletter

COT Updates Financial News Forex and Currency News

02 Mar

Speculator Extremes: Yen, US Bonds, NZ Dollar & Cotton lead Bullish & Bearish Positions

By InvestMacro

The latest update for the weekly Commitment of Traders (COT) report was released by the Commodity Futures Trading Commission (CFTC) on Friday for data ending on February 25th.

Here Are This Week’s Most Bullish Speculator Positions:

Japanese Yen

The Japanese Yen speculator position continued higher and comes in as the most bullish extreme standing this week. The Japanese Yen speculator level is currently at a 100.0 percent score of its 3-year range.

The six-week trend for the percent strength score totaled 44.8 this week. The overall net speculator position was a total of 95,980 net contracts this week with a boost of 35,411 contract in the weekly speculator bets.

Speculators or Non-Commercials Notes:
Speculators, classified as non-commercial traders by the CFTC, are made up of large commodity funds, hedge funds and other significant for-profit participants. The Specs are generally regarded as trend-followers in their behavior towards price action – net speculator bets and prices tend to go in the same directions. These traders often look to buy when prices are rising and sell when prices are falling. To illustrate this point, many times speculator contracts can be found at their most extremes (bullish or bearish) when prices are also close to their highest or lowest levels.
These extreme levels can be dangerous for the large speculators as the trade is most crowded, there is less trading ammunition still sitting on the sidelines to push the trend further and prices have moved a significant distance. When the trend becomes exhausted, some speculators take profits while others look to also exit positions when prices fail to continue in the same direction. This process usually plays out over many months to years and can ultimately create a reverse effect where prices start to fall and speculators start a process of selling when prices are falling.

US Treasury Bond

The US Treasury Bond speculator position comes next in the extreme standings this week. The US Treasury Bond speculator level is now at a 97.6 percent score of its 3-year range.

The six-week trend for the percent strength score was 14.2 this week. The speculator position registered 40,912 net contracts this week with a weekly reduction by -6,869 contracts in speculator bets.

Steel

The Steel speculator position comes in third this week in the extreme standings. The Steel speculator level resides at a 94.5 percent score of its 3-year range.

The six-week trend for the speculator strength score came in at 28.1 this week. The overall speculator position was 3,897 net contracts this week with a decline of -1,193 contracts in the weekly speculator bets.

Corn

The Corn speculator position comes up number four in the extreme standings this week. The Corn speculator level is at a 90.0 percent score of its 3-year range.

The six-week trend for the speculator strength score totaled a change of 11.9 this week. The overall speculator position was 441,161 net contracts this week with a decrease by -27,563 contracts in the speculator bets.

Ultra U.S. Treasury Bonds

The Ultra U.S. Treasury Bonds speculator position rounds out the top five in this week’s bullish extreme standings. The Ultra U.S. Treasury Bonds speculator level sits at a 87.4 percent score of its 3-year range. The six-week trend for the speculator strength score was 5.6 this week.

The speculator position was -227,735 net contracts this week with a rise of 18,507 contracts in the weekly speculator bets.

This Week’s Most Bearish Speculator Positions:

New Zealand Dollar

The New Zealand Dollar speculator position comes in as the most bearish extreme standing this week. The New Zealand Dollar speculator level is at a 1.1 percent score of its 3-year range.

The six-week trend for the speculator strength score was -1.9 this week. The overall speculator position was -53,709 net contracts this week with a dip by -1,546 contracts in the speculator bets.

Cotton

The Cotton speculator position comes in next for the most bearish extreme standing on the week. The Cotton speculator level is at a 4.8 percent score of its 3-year range.

The six-week trend for the speculator strength score was -5.1 this week. The speculator position was -43,486 net contracts this week with a decline of -6,418 contracts in the weekly speculator bets.

Soybean Meal

The Soybean Meal speculator position comes in as third most bearish extreme standing of the week. The Soybean Meal speculator level resides at a 12.6 percent score of its 3-year range.

The six-week trend for the speculator strength score was -2.5 this week. The overall speculator position was -36,112 net contracts this week with a drop by -14,516 contracts in the speculator bets.

WTI Crude Oil

The WTI Crude Oil speculator position comes in as this week’s fourth most bearish extreme standing. The WTI Crude Oil speculator level is at a 14.7 percent score of its 3-year range.

The six-week trend for the speculator strength score was -60.5 this week. The speculator position was 171,198 net contracts this week with a reduction by -26,396 contracts in the weekly speculator bets.

5-Year Bond

Finally, the 5-Year Bond speculator position comes in as the fifth most bearish extreme standing for this week. The 5-Year Bond speculator level is at a 19.0 percent score of its 3-year range.

The six-week trend for the speculator strength score was 8.1 this week. The speculator position was -1,625,773 net contracts this week with a gain of 111,760 contracts in the weekly speculator bets.

Article By InvestMacro – Receive our weekly COT Newsletter

COT Updates Financial News Forex and Currency News

27 Feb

USD/JPY steadies as the market consolidates after fresh lows

By RoboForex Analytical Department

USD/JPY is consolidating near 149.33 on Thursday, with the yen pausing its rally while holding near four-month highs against the USD. This stabilisation follows renewed support for the US dollar amid concerns that US President Donald Trump’s trade tariff policies could escalate once again.

Key drivers influencing USD/JPY

Trump recently announced plans to review the possibility of imposing reciprocal 25% tariffs on European cars and other goods. Additionally, he confirmed that tariffs on imports from Mexico and Canada will take effect on 2 April rather than the initially planned 4 March. These developments have intensified trade tensions, lending support to the USD.

Despite today’s consolidation, the yen remains strong, with expectations that the Bank of Japan (BoJ) may continue raising interest rates this year following Q4 inflation data.

Additionally, the JPY remains in demand as a safe-haven asset amid ongoing uncertainty and underlying risks in global financial markets.

A crucial set of economic data will be released on Friday, including figures on industrial production, retail sales, and Tokyo’s inflation rate. These reports could provide further insight into the BoJ’s future monetary policy trajectory.

Technical analysis of USD/JPY

On the H4 chart, USD/JPY completed a downward wave to 148.55. The market is now forming a consolidation range at this low. A corrective move towards 151.80 could develop if the price breaks upward, marking the first key target. Upon reaching this level, a further corrective decline towards 150.20 may follow. The MACD indicator confirms this scenario, with its signal line positioned below zero but pointing upward, indicating potential correction.

On the H1 chart, USD/JPY is forming an upward wave structure towards 150.00. A broad consolidation range is developing around 149.25. If the price breaks upwards from this range, a correction towards 151.80 could unfold. After reaching this target, the pair could pull back to 150.20. The Stochastic oscillator supports this outlook, with its signal line above 50 and pointing upwards, suggesting short-term bullish momentum.

Conclusion

USD/JPY has temporarily stabilised after recent declines, with technical indicators suggesting a potential corrective move towards 151.80. However, upcoming Japanese economic data and ongoing geopolitical uncertainties could introduce volatility. Market participants will closely monitor BoJ signals and further developments regarding US trade tariffs, which could impact the yen’s safe-haven appeal.

Disclaimer

Financial News Forex and Currency News

26 Feb

EUR/USD appreciates as optimism builds around Germany’s fiscal plans

By RoboForex Analytical Department

EUR/USD climbed to 1.0504 on Wednesday, nearing its monthly high of 1.0528. The pair gained momentum following positive news from Germany, fuelling market optimism.

Key factors driving EUR/USD

Reports have emerged suggesting that Germany is considering the creation of a 200-billion-euro emergency fund, boosting expectations for increased local fiscal spending.

Additionally, Friedrich Merz, a leading candidate for the next German Chancellor, has proposed reforming the country’s debt brake to allow for more flexible financing of key expenditures. This could include tax cuts, lower energy prices, and a significant increase in defence spending – all of which could stimulate the German economy and support the euro.

Meanwhile, market participants are closely analysing recent comments from the European Central Bank (ECB) comments ahead of next week’s policy meeting. The ECB is widely expected to cut interest rates for the fifth consecutive time. However, some policymakers, including Isabel Schnabel, suggest that the central bank may soon need to pause or halt rate cuts altogether. The euro could find additional support if the ECB signals a more cautious stance on further easing,

Technical analysis of EUR/USD

On the H4 chart, EUR/USD completed a growth wave to 1.0524 and is now developing a downward wave towards 1.0450. A breakout below this level would open the potential for a further decline towards 1.0380. After reaching this target, a corrective rebound towards 1.0450 is likely. The MACD indicator confirms this scenario, with its signal line positioned above zero but pointing sharply downward.

On the H1 chart, the market declined to 1.0453, followed by a correction to 1.0524. The likelihood of the downward wave continuing towards 1.0450 remains high. If this level is breached, the correction could extend towards 1.0380, with the broader trend potentially targeting 1.0373. The Stochastic oscillator supports this outlook, with its signal line above 50 and pointing decisively downward.

Conclusion

EUR/USD benefits from renewed optimism surrounding Germany’s potential fiscal expansion, but downside risks persist due to the uncertainty surrounding ECB policy. While technical indicators suggest an ongoing downward wave, the pair’s movement will depend on key support levels around 1.0450 and 1.0380. The upcoming ECB meeting remains a critical event that could shape the euro’s near-term direction.

Disclaimer

Financial News Forex and Currency News

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