By CountingPips.com
The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures speculators continued to decrease their long positions of the euro against the US dollar to their lowest level since January while adding to bets on the Japanese yen. Non-commercial futures positions, those taken by hedge funds and large money speculators, added to their positions in favor of the Japanese yen, British pound sterling, Australian dollar, Canadian dollar, New Zealand dollar and the Swiss franc directly against the US dollar while decreasing their bets for the euro and Mexican peso, according to data on July 19th.
This week’s notable changes were Australian dollar positions rising to the highest level since April while New Zealand dollar positions also continued to rise and increased to their highest level since November 2010.
EuroFX: Currency speculators decreased their net long positions for the euro against the U.S. dollar for a second straight week as of July 19th to a total of 9,246 net long contracts. Euro futures positions had decreased the previous week to a total of 12,416 contracts on July 12th. Euro positions now sit at their lowest point since January 18th when net long contracts equaled 4,109.
The COT report is published every Friday by the Commodity Futures Trading Commission (CFTC) 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 betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. The graphs overlay the forex spot closing price of each Tuesday when COT trader positions are reported for each corresponding spot currency pair.
GBP: British pound sterling positions increased higher for a second consecutive week after touching the lowest level in over a year on July 5th. British pound contracts, while remaining on the short side, rose to a net short total of 6,714 on July 19th following a net short position of 24,801 contracts reported on July 12th.
JPY: The Japanese yen net contracts improved for the third consecutive week as yen positions rose to the highest position since November 2010. Yen net long positions increased to a total of 42,155 net long contracts reported on July 19th. This follows a total of 28,288 net long contracts reported on July 12th.
CHF: Swiss franc long positions increased higher for a second consecutive week after retreating for five straight weeks through July 5th. Franc positions rose to a total of 11,494 net long contracts as of July 19th following a net of 8,081 long contracts on July 12th.
CAD: The Canadian dollar positions rose higher for a third consecutive week to a total of 27,764 contracts as of July 19th. CAD net contracts had risen to a total of 15,334 net long contracts on July 12th as CAD continue to rebound after falling over to a net short total position on June 11th.
AUD: The Australian dollar long positions advanced for the third straight week to a total net amount of 77,795 long contracts as of July 19th. AUD positions had totaled 67,623 net long contracts on July 12th and now sit at the highest level since April 26th.
NZD: New Zealand dollar futures positions continued to edge higher for a third consecutive week and leveled at the highest level since November 2010. NZD contracts increased to a total of 21,438 net long positions as of July 19th from a total of 19,584 long contracts on July 12th.
MXN: Mexican peso long contracts fell last week after a string of three consecutive weekly increases. Peso positions declined to a total of 89,266 net long speculative positions as of July 19th following a total of 98,447 contracts on July 12th.
COT Data Summary as of July 12, 2011
Large Speculators Net Positions vs. the US Dollar
EUR: +9,246
GBP: -6,714
JPY: +42,155
CHF: +11,494
CAD: +27,764
AUD: +77,795
NZD: +21,438
MXN: +89,266
