COT report review (FX)

CFTC commitment of traders report was released on Friday (7^th August) and cover positions up to Tuesday (4^th August). 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 increased net long position in US dollar by $2.68 billion to $36.07 billion.

Shorts increased -

• Largest short addition was registered in Yen by $1.58 billion to -$8.01 billion.
• Euro registered second largest short addition by $1.04 billion to -$15.42 billion.
• Canadian Dollar registered third largest short increase by $0.52 billion to -$4.87 billion.
• Franc net positioned moved to negative today as shorts were added by $0.2 billion to -$0.19 billion.

Shorts covered -

• Pound registered largest short covering by $0.32 billion to -$0.64 billion.
• Mexican Peso registered second largest short covering by $0.21 billion to -$2.51 billion.
• New Zealand Dollar shorts were covered by $76 million to -$0.77 billion.
• Australian Dollar shorts were covered by $71 million to -$3.65 billion.