Cash Back Forex | Jun 26, 2012 07:14AM ET
The latest week was marked by liquidation of futures as the June contract expired. The total reduction in the futures and delta-adjusted option positions was almost 350K contracts. In the process, the long USD position was reduced to 285K contracts; this reduction takes the USD long to the smallest since the report of May 22nd.
The largest currency futures market is the euro and that is where there was the largest reduction in the OI. The spec short position was reduced to 176K, from the previous week's 235K.
It is interesting to note that part of the net short reduction was caused by the purchases on 15.2K of new longs by the large specs. Large specs remain a 3.5 to 1 short in the euro versus the USD.
There was a sizable drop in the short positions in the SF, down to 22.3K from the previous week's 53K. Could this activity be in any way related to the SNB peg with the euro?
Looking at the COT long form of futures and options in the Japanese yen, we find the commercial is less than 150 contracts from being even. There is a major disagreement, however, among the specs. The small spec has a 16K short and the larg spec, about a 16K yen long. Last week the small spec was right but today, the large spec is a winner.
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