COT report review (FX)

CFTC commitment of traders report was released on Friday (9^th October) and cover positions up to Tuesday (6^th October). COT report is not a complete presenter of entire market positions, since future market is relatively smaller compared to Spot FX market. Nevertheless, it presents crucial picture on how key participants are looking at future moves.

Kindly note figures are rounded to next decimal.

Key highlights -

Market participants are net short on all currencies against dollar.

Participants decreased net long position in US dollar by $2.11 billion to $21.12 billion. Dollar longs are at around lowest level in more than a year.

Shorts increased -

• Pound registered largest increase in net shorts, where shorts were increased by $0.24 billion to -$0.43 billion.
• Euro registered second largest net short increase by $0.19 billion to -$12.51 billion.
• Franc shorts were increased by $0.16 billion to -$0.51 billion.

Shorts covered -

• Mexican Peso registered largest short covering by $1.15 billion to -$0.16 billion.
• Australian Dollar registered second largest decline in shorts by $0.49 billion to -$2.93 billion.
• Yen registered third largest decline in shorts by $0.47 billion to -$1.83 billion.
• Canadian Dollar shorts declined by $0.46 billion to -$2.69 billion.
• New Zealand Dollar shorts were reduced by $0.13 billion to -$64 million.