By CountingPips.com | Weekly Large Trader COT Report: Currencies

US Dollar net speculator positions advanced last week to +$8.01 billion

The latest data for the weekly Commitment of Traders (COT) report, released by the Commodity Futures Trading Commission (CFTC) on Friday, showed that large traders and currency speculators increased their bullish bets for the US dollar last week for a second straight week and pushed the aggregate speculative bullish position to its highest level in five weeks.

Non-commercial large futures traders, including hedge funds and large speculators, had an overall US dollar long position totaling +$8.01 billion as of Tuesday July 12th, according to the latest data from the CFTC and dollar amount calculations by Reuters. This was a weekly change of +$3.83 billion from the +$4.18 billion total long position that was registered on July 5th, according to the Reuters calculation that totals the US dollar contracts against the combined contracts of the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.

The US dollar speculator position has now been in positive (long) territory for eight straight weeks and is at its highest level since June 7th when the bullish position was +$11.3 billion.

Weekly Speculator Contract Changes:

Last week’s data showed the major currencies that improved the most against the US dollar were the Australian dollar (+11,313 weekly change in contracts), Mexican peso (+7,685 contracts) and the Canadian dollar (+5,658 contracts).

The New Zealand dollar (+2,414 contracts) also saw a small gain in net speculative contracts last week.

The currencies on the downside of speculative bets versus the dollar were the the Japanese yen (-16,023 weekly change in contracts), euro (-12,333 contracts), British pound sterling (-11,036 contracts) and the Swiss franc (-1,960 contracts).

Notable changes:

Australian dollar bets increased for a third week and are in long territory for a second week.

Canadian dollar and Mexican peso positions have each gained for three weeks, respectively. New Zealand dollar positions are up for four straight weeks.

Euro positions have declined for four weeks and are at the lowest level (or most bearish level) since January 26th when positions equaled -127,215 contracts while British pound positions fell to their worst position in five weeks.

This latest COT data is through Tuesday July 12th and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) 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 dollar will gain versus the euro.

Please see the individual currency charts below. (Click on Charts to Enlarge)

Weekly Charts: Large Trader Weekly Positions vs Price

EuroFX:

British Pound Sterling:

Japanese Yen:

Swiss Franc:

Canadian Dollar:

Australian Dollar:

New Zealand Dollar:

Mexican Peso:

*COT Report: The weekly commitment of traders report summarizes the total trader positions for open contracts in the futures trading 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). Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

The Commitment of Traders report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions data that was reported as of the previous Tuesday (3 days behind).

Each currency contract is a quote for that currency directly against the U.S. dollar, a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and a net long position expect that currency to rise versus the dollar.

(The charts overlay the forex closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.) See more information and explanation on the weekly COT report from the CFTC website.

All information contained in this article cannot be guaranteed to be accurate and is used at your own risk. All information and opinions on this website are for general informational purposes only and do not in any way constitute investment advice.

Article by CountingPips.com