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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 reduced their bets for the Euro from a record high level this week while also pulling back on their sterling and peso bullish positions.

Non-commercial large traders, including hedge funds and large speculators, raised their bets for the Australian dollar (6,759 weekly change in contracts), the Swiss franc (296 weekly change in contracts) and the Canadian dollar (5,180 contracts) against the US dollar in futures trading this week.

Meanwhile, the currencies whose speculative bets declined this week versus the dollar were the euro (-20,882 weekly change in contracts), British pound sterling (-10,337 contracts), Japanese yen (-2,008 contracts), New Zealand dollar (-3,169 contracts) and the Mexican peso (-13,058 contracts).

Euro positions last week rose to a new all-time record high level before this week’s decline. The Euro speculative bets fall coincided with the euro currency breaking lower in the spot exchange market down below the 1.2200 level.

US Dollar Index bets see small rise:

The non-commercial futures contracts of US Dollar Index futures saw a small weekly increase of 634 contracts that brought the overall position to a total net position of -1,781 contracts in the data reported through Tuesday April 24th. This was from the previous week total of -2,415 net contracts.

Despite the small trimming of the US dollar index bearish position, the US dollar index spot price rose strongly to the best position since January on broad based gains by dollar against all the major currencies (see UUP dollar index ETF above).

Table of Weekly Commercial Traders and Speculators Levels & Changes:

 

This latest COT data is through Tuesday 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.

 

Weekly Charts: Large Trader Weekly Positions vs Price

Here are the weekly charts of the individual major currencies.

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.

Article by CountingPips.com