Cash Back Forex | Jul 17, 2012 02:53AM ET
Once again currency futures speculators increased their euro and Swiss franc shorts. The total euro short advanced to 204,608 contracts and the SF to 35,035. Since the Swiss National Bank has pegged the franc with the euro, the franc is merely a proxy for the euro. Specs also have a large position, long the DI Index futures contracts.
With the market loaded with short euro positions, this might explain Friday rallies in the euro as specs take their money off the table ahead of the weekend. The final CME report from Friday shows the euro volume was down, but only by 4106 contracts. We have yet to see a period of panic short covering in the euro.
The tally of the contracts reviewed shows the net USD long position advanced to 300,125 futures and delta adjusted options. While the net long USD is large, it is not close to a record. Part of this is because there was a reduction in the short Japanese yen positions. Another reason the net long USD position did not increase more was because there was spec buying in the aussie and NZD currencies versus selling of the USD.
There also seems to be a new trend, spec selling of the pound. Short positions have slowly grown back up to 21.2K. So far, this trade is not a money winner, probably break even at best. This is not the type of market action that encourages more selling.
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.