Cash Back Forex | Mar 05, 2013 09:52AM ET
Last week we reported the total position of speculators flipped to the long side of the USD for the first time since the Novermber 27, 2012 report. The USD long from last week, 30,552 contracts, grew sharply to 178,781 of various USD long positions. This is the largest long USD position specs have held since the July 24 report in 2012.
The big shift was in the commodity currencies. Going back to our COT report of Feb 5, 2013 we observed:
For the past several months it has been very popular to be long commodity currencies and short the USD. Combined long positions of the Australian Canadian, and New Zealand Dollars exceeded 230K contracts in three separate periods. This position has been reduced to only 158K contracts, though almost all of the reduction has come in the Canadian Dollar. Judging from market action since the close of the report there is more C$, and probably A$ liquidation.
Indeed, there has been liquidation in these currencies. The most recent report shows the speculative long in the commodity currencies is down to only 14,831 contracts.
For the first time in months, the sentiment in the heavily-traded euro has shifted and they are now short the single currency. It was early January 2013, the last time specs were short the euro.
The big short in the Japanese yen remain for the most part. Recently, it looks like some of the currency warriors have been attacking the British pound. There the net short sutures position has increased to 57.6K contracts.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.