Latest Commitment of Traders positions (FX) as of January 24th 2017

CFTC commitment of traders report was released on Friday (27th January) and cover positions up to Tuesday (24th January). 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 short in all currencies against the dollar except the Australian dollar, and the Canadian dollar.

Shorts decreased:

• The euro saw the biggest decrease in the net-short positions, where net-shorts decreased by 14,152 contracts -52.3K contracts.
• The net short position in the Japanese yen declined by 10,990 contracts to -66.8K contracts.
• The Mexican peso registered a covering of shorts in the tune of 8,667 contracts that brought the net position to -64.6K contracts.
• British pound shorts were covered by 3,070 contracts to -63.2K contracts.
• Speculators recued their net shorts by 2,405 contracts in the New Zealand dollar; thus bringing the net position to -9.9K contracts.
• Swiss franc registered a very marginal decrease in the net short positions last week. Shorts got reduced by 39 contracts that brought the net position to -13.6K contracts.

Longs increased:

• The Australian dollar longs were increased by 5,449 contracts, pushing the net position to +10.3K contracts.

Position shifted from short to long:

• Speculators increased long positions in the Canadian dollar in such a way that the net position turned long.  The Canadian dollar’s net long positions rose by 7,975 contracts to +2.5K contracts.