Futures Bets vs Euro hit new record highs, Pound, Yen shorts rise
By CountingPips.com
The latest COT data out on Friday showed that futures speculators have increased their long bets for the U.S. dollar as of May 4th, according to the Commitments of Traders (COT) data released on Friday by the Chicago Mercantile Exchange. The New Zealand dollar was the only currency that showed increasing long contracts against the U.S. dollar for the
Non-commercial futures positions, those taken by hedge funds and large speculators, were net short the euro against the U.S. dollar by a new record high of -103,402 contracts after being net short the euro by -89,013 contracts the week before. The net short euro positions have increased for three consecutive weeks after a pullback on April 10th and have coincided with the euro’s sharp decline against the dollar that has brought the EUR/USD to a 14-month low.
The COT report is published every Friday by the Chicago Mercantile Exchange (CME) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are expecting that currency to fall against the dollar and net longs expect that currency to rise versus the dollar.
Other major currencies net short in the CME futures market against the dollar this week were the British pound, Japanese yen and Swiss franc while the Australian dollar, Canadian dollar, and New Zealand dollar all had a net long amount of contracts. The British Pound Sterling net shorts increased to -65,616 after a total of -54,666 last week. The Swiss franc net short positions registered -16,592 contracts after -13,613 net shorts last week. The Japanese yen had net short positions of -65,612 contracts, up from -49,777 the week prior.
The Australian dollar futures positions were net long by 56,982 contracts as of May 4th, a decrease after last week totaling net long 66,068 contracts. Canadian dollar long positions were net by 52,012 contracts after 59,198 net longs last week and the New Zealand dollar net longs were 14,976 this week after last week being 12,909 net long contracts.
COT Data Summary (vs. the US Dollar)
Euro record net shorts at -103,402 contracts
British Pound net shorts increase to -65,616
Swiss Franc net shorts increase to -16,592
Canadian Dollar net longs decrease to 52,012
Australian Dollar net longs decrease to 56,982
New Zealand Dollar net longs increase to 14,976
Mexican Peso net longs decrease to 83,043
Japanese Yen net shorts increase to -65,612