CFTC commitment of traders report review (FX)

CFTC commitment of traders report was released on Friday (22nd September) and cover positions up to Tuesday (25th September). 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, except for Pound.

Participants decreased net long position in US dollar by $1.69 billion to $21.07 billion. Dollar longs are at lowest level in more than a year.

Shorts increased -

• Australian Dollar registered largest increase in net shorts, where shorts were increased by $0.84 billion to -$3.745 billion.
• Franc registered second largest net short increase by $0.73 billion to -$0.24 billion.
• New Zealand Dollar shorts were increased by $89 million to -$0.22 billion.

Shorts covered -

• Mexican Peso registered largest short covering by $1.29 billion to -$0.37 billion.
• Canadian Dollar registered second largest decline in shorts by $0.66 billion to -$2.89 billion.
• Euro registered third largest decline in shorts by $0.6 billion to -$2.91 billion.
• Pound registered decline in shorts by $0.47 billion to +$0.12 billion.
• Yen shorts were reduced by $0.32 billion to -$2.46 billion.