By CountingPips.com
The latest Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that futures speculators increased their short positions of the US dollar against the other major currencies for the first time in three weeks. Non-commercial futures positions, those taken by hedge funds and large speculators, were overall net short the US dollar by $34.9 billion against other major currencies as of the March 1st data release. This is a rise from a total short position of $22.36 billion on February 22nd, according to the CFTC data and calculations by Reuters which calculates the dollar positions against the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.
This week’s data saw some notable changes with euro positions increasing to their highest level since January of 2008 while Japanese yen positions increased sharply over to the long side after two weeks on the short side and falling to their lowest level since May 2010. Mexican peso long positions decreased as of March 1st after gaining for seven straight weeks.
EuroFx: Currency speculators added to their net long positions for the euro against the U.S. dollar for a second consecutive week. Futures positions in the euro rose to a total of 51,308 long positions as of March 1st following a total of 45,598 long positions on February 22nd. This is the highest net long euro position since January of 2008.
The COT report is published every Friday by the Commodity Futures Trading Commission (CFTC) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar.
The graphs overlay the forex spot closing price of the Tuesday when COT trader positions are reported for each corresponding spot currency pair.
GBP: Speculators decreased their net long British pound sterling bets for a second straight week to a total of 25,809 long positions after totaling 36,009 long positions as of February 22nd.
JPY: The Japanese yen net contracts reversed course sharply following two straight weeks of declines. Yen net positions increased to a total of 41,274 long contracts following a total of 27,746 net short contracts reported on February 22nd.
CHF: Swiss franc long positions rose for a third consecutive week to a total of 18,017 long contracts, according to the COT data as of March 1st. Franc contracts are now at their highest level since October and had totaled a net of 12,291 long contracts on February 22nd.
CAD: The Canadian dollar positions increased to their highest level since March 2010. Canadian dollar long positions rose to a total of 72,827 net long contracts on March 1st after registering 68,348 net longs on February 22nd.
AUD: The Australian dollar long positions advanced for a second consecutive week as AUD contracts totaled a net amount of 71,853 long contracts as of March 1st. AUD positions had totaled 66,064 net long contracts on February 22nd.
NZD: New Zealand dollar futures positions headed lower for a third week to a total of 7,411 long positions as of March 1st. NZD large speculator long positions had decreased the previous week to a total of 8,101 long contracts on February 22nd.
MXN: Mexican peso long contracts decreased after gaining for seven consecutive weeks. Peso positions fell to 97,202 net long contracts as of March 1st after totaling 114,276 longs the week prior on February 22nd.
COT Data Summary as of March 1, 2011
Large Speculators Net Positions vs. the US Dollar
Euro: +51,308
British pound sterling: +25,809
Japanese yen: +41,274
Swiss franc: +18,017
Canadian dollar: +72,827
Australian dollar: +71,853
New Zealand dollar: +7,411
Mexican peso: +97,202
Further COT Resources from around the web:
