Latest Commitment of Traders positions (FX) as at July 26th, 2016

CFTC commitment of traders report was released on Friday (29th July) and cover positions up to Tuesday (July 26th). COT report is not a complete presenter of entire market positions since the future market is relatively smaller compared to Spot FX market. Nevertheless, it presents crucial picture on how key participants are looking at future moves.

Key highlights:

Market participants are net long in all currencies against Dollar, except for the Mexican peso, euro, and the pound.

Shorts increased:

• The euro registered the biggest increase in net short position by speculators. The net short positions increased by 12,709 contracts to -112.6K contracts.
• The net short position in the Mexican peso got boosted by 7,196 contracts to -46.6K contracts.
• The pound saw its net short position rise by 6,186 contracts to -80.6K contracts.

Longs increased:

• Canadian dollar is the only counter where longs were increased and by 1,112 contracts to +23.2K contracts.

Longs decreased:

• Japanese yen saw sizable decrease in net longs as speculators covered position ahead of BoJ policy meeting. Net long position decreased by 4,395 contracts to +35K contracts.
• Swiss franc saw a covering of net long positions and by 3,741 contracts to +0.9K contracts.
• New Zealand dollar longs were reduced by 1,958 contracts to +0.2K contracts.
• Australian dollar net-longs were reduced by 1,921 contracts to +31.5K contracts.