CFTC: USD longs contracted
Here are the essentials of the latest Commitments of Traders (COT) report, released on July 26 by the Commodity Futures Trading Commission (CFTC) for a week ended July 23.
The value of the dollar's net long position declined from $29.6B on a week ended July 16 to $28.7B on a week ended July 23. The figure contracted for the first time after four weeks of growth.
EUR/USD. Euro short positions kept declining for a third week in a row, contracting by 9K contracts.
GBP/USD. Net short positions on GBP extended growth, rising by 13K contracts.
USD/JPY. JPY net shorts remained almost unchanged.
AUD/USD. AUD net shorts decreased by 8K contracts.
NZD/USD. NZD net shorts remained small.
USD/CAD. CAD net shorts kept contracting for a third consecutive week.
USD/CHF. CHF shorts remained unchanged.
It’s necessary to note that the figures cited above are always a week old at the time of their release. Never the less, CFTC data gives a good oversight into how the market is positioned and if/how these positions are being unwound. Although the CME speculators represent a small fraction of trading in the currency markets, their trades are widely seen as typical of hedge fund investors' currency movements.