Latest Commitment of Traders positions (FX) as at December 31st 2018

CFTC commitment of traders report was released on Tuesday (5th January) and cover positions up to Monday (31st December).  COT report is not a complete presenter of entire market positions since the future market is relatively smaller compared to the spot FX market. Nevertheless, it presents a crucial picture of how key participants are looking at future moves.

Key highlights:

Market participants are net short in all currencies against the dollar except the Mexican peso and New Zealand dollar.

Short positions decreased:

• The short positions in the Australian dollar declined for the 9th consecutive week and by 4,970 contracts to -26.3K contracts.
• The short positions in the euro declined by 11,807 contracts to -46.6K contracts.
• The short positions in the Japanese yen declined by 10.466 contracts to -886K contracts/

Short positions increased:

• The short positions in the British pound sterling rose marginally by 435 contracts to -56.9K contracts.
• The short positions in the Swiss franc rose by 2,201 contracts to -25.5K contracts.
• The short positions in the Canadian dollar rose sharply by 5,957 contracts to -50.6K contracts.

Long position increased:

• The long positions in the New Zealand dollar rose marginally by 22 contracts to 1.9K contracts.
• The long positions in the Mexican Peso rose sharply by 6,343 contracts to 9.8K contracts.