Forex Speculators Push U.S. Dollar Bullish Positions Higher For 2nd Week
Zachary Storella | Jan 08, 2017 03:42AM ET
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 in the first week of the new year.
Non-commercial large futures traders, including hedge funds and large speculators, had an overall US dollar long position totaling $25.43 billion as of Tuesday January 3rd, according to the latest data from the CFTC and dollar amount calculations by Reuters. This was a weekly gain of $1.26 billion from the $24.17 billion total long position that was registered the previous week, according to the Reuters calculation (totals of 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 speculative positions rose for a second straight week and have now remained above the +$20 billion threshold for a tenth consecutive week.
Weekly Speculator Contract Changes:
The only major currency that improved against the US dollar last week was the Japanese yen which saw a small increase of just 245 contracts.
The currencies whose speculative bets fell last week versus the dollar were the euro (-648 weekly change in contracts), British pound sterling (-7,643 contracts), Swiss franc (-3,348 contracts), Canadian dollar (-2,273 contracts), Australian dollar (-1,746 contracts), New Zealand dollar (-412 contracts) and the Mexican peso (-3,979 contracts).
Table of Weekly Commercial (Comms) Traders and Speculators (Specs) Levels & Changes:
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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 and 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.
h3 Weekly Charts: Large Trader Weekly Positions vs Price/h3EuroFX:
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.
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