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Positions of large speculators according to the COT report as at 11/6/2021

Total net speculator positions in the USD index fell by 1,200 contracts last week. This change is the result of a 1,700 contract increase in long positions and a 2,900 contract increase in short positions.

 

The increase in total net speculator positions occurred in the British pound, Swiss franc and Japanese yen last week.

 

Decrease in total net positions occurred in the euro, Canadian dollar, Australian dollar and New Zealand dollar.

 

The Fed will meet on Wednesday to decide on rates and FOMC policy. This meeting could indicate which direction the US Dollar could take in the coming days.

 

The important report is on Friday when the US reports key employment data, the so-called NFP report.

The positions of speculators in individual currencies

The total net positions of large speculators are shown in Table 1: If the value is positive then the large speculators are net long. If the value is negative, the large speculators are net short.

 

 

11/6/2021

4/6/2021

28/5/2021

21/5/2021

14/5/2021

7/5/2021

USD index

1,800

3,000

2,800

2,700

2,500

2,100

EUR

107,200

109,300

104,000

99,900

93,900

84,800

GBP

27,700

24,100

30,700

24,900

28,200

19,800

AUD

-9,400

-1,900

-800

3,000

2,400

1,500

NZD

5,500

5,900

8,600

8,400

9,300

8,600

CAD

45,300

48,800

46,100

38,600

25,900

15,722

CHF

1,100

300

-1,200

-4,300

-2,900

100

JPY

-37,300

-47,100

-50,200

-50,900

-41,700

-41,500

Table 1: Total net positions of large speculators

 

Notes:

Large speculators are traders who trade large volumes of futures contracts, which, if the set limits are met, must be reported to the Commodity Futures Trading Commission. Typically, this includes traders such as funds or large banks. These traders mostly focus on trading long-term trends and their goal is to make money on speculation with the instrument.

The total net positions of large speculators are the difference between the number of long contracts and the number of short contracts of large speculators. Positive value shows that large speculators are net long. Negative value shows that large speculators are net short. The data is published every Friday and is delayed because it shows the status on Tuesday of the week.

The total net positions of large speculators show the sentiment this group has in the market. A positive value of the total net positions of speculators indicates bullish sentiment, a negative value of total net positions indicates bearish sentiment.

When interpreting charts and values, it is important to follow the overall trend of total net positions. The turning points are also very important, i.e. the moments when the total net positions go from a positive value to a negative one and vice versa. Important are also extreme values of total net positions as they often serve as signals of a trend reversal.

Sentiment according to the reported positions of large players in futures markets is not immediately reflected in the movement of currency pairs. Therefore, information on sentiment is more likely to be used by traders who take longer trades and are willing to hold their positions for several weeks or even months.

Detailed analysis of selected currencies

Explanations:
 

Purple line and histogram in the chart window: this is information on the total net position of large speculators. This information shows the strength and sentiment of an ongoing trend.

Green line in the indicator window: these are the bullish positions of large speculators.

Red line in the indicator window: indicates the bearish positions of large speculators.

If there is a green line above the red line in the indicator window, then it means that the overall net positions are positive, i.e. that bullish sentiment prevails. If, on the other hand, the green line is below the red line, then bearish sentiment prevails and the overall net positions of the big speculators are negative.

Information on the positions of so-called hedgers is not shown in the chart, due to the fact that their main goal is not speculation, but hedging. Therefore, this group usually takes the opposite positions than the large speculators. For this reason, the positions of hedgers are inversely correlated with the movement of the price of the underlying asset. However, this inverse correlation shows the ongoing trend less clearly than the position of large speculators.

Charts are made with the use of www.tradingview.com.
 

Euro

Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

11/6/2021 1,100 -2,100 -5,300 -3,200 Weakening bullish
4/6/2021 3,900 5,300 1,300 -4,100 Bullish
28/5/2021 10,500 4,100 3,800 -300 Bullish
 
COT-11-6-obr-1-1.png
Figure 1: The euro and COT positions of large speculators on a weekly chart


Total net speculator positions fell by 2,100 contracts last week, which indicates a weakening bullish sentiment. This change is due to a decrease in long positions by 5,300 contracts and a decrease in short positions by 3,200 contracts.

The price of the euro weakened last week. For further possible decline, the euro has room at least to the rising trend line, which is the level around 1.20.

Long-term resistance: 1.2240 - 1.2350

Long-term support: 1.1700 - 1.1750
 

The British pound

Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

11/6/2021 -2,900 3,600 -5,000 -8,600 Bullish
4/6/2021 5,100 -6,600 0 -6,600 Weakening bullish
28/5/2021 -3,800 5,800 1,200 -4,600 Bullish

 

COT-11-6-obr-2-1.png
Figure 2: The GBP and COT positions of large speculators on a weekly chart


Last week, the total net positions of speculators grew by 3,600 contracts. This change is the result of a decrease in long positions by 5,000 and a decrease in short positions by 8,600 contracts.

The pound weakened slightly last week.

 

Long-term resistance: 1.42-1.4350

 

Long-term support: 1.3670-1.3700
 

The Australian dollar

Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

11/6/2021 13,500 -7,500 -7,200 300 Bearish
4/6/2021 400 -1,100 300 1,400 Bearish
28/5/2021 -2,600 -3,800 -2,800 1,000 Bearish
 
COT-11-6-obr-3-1.png
Figure 3: The AUD and COT positions of large speculators on a weekly chart


Last week, speculators' total net positions fell by 7,500 contracts. This change is due to a decrease in long positions by 7,200 and an increase in short positions by 300 contracts.

The Australian dollar weakened slightly last week. It has been moving in a sideways trend for the last few weeks.

Long-term resistance: 0.7870-0.8000

 

Long-term support: 0.7530-0.7600
 

The New Zealand dollar

 

Date

Weekly change in open interest

Weekly change in total net positions of speculators

Weekly change in total long positions of speculators

Weekly change in total short positions of speculators

Sentiment

11/6/2021 -450 -400 -2,700 -2,300 Weakening bullish
4/6/2021 2,000 2,700 200 2,900 Weakening bullish
28/5/2021 1,100 200 800 600 Bullish

COT-11-6-obr-4-1.png
Figure 4: The NZD and the position of large speculators on a weekly chart


Last week, total net positions fell by 400 contracts. This change is the result of a 2,700 decrease in long positions and a 2,300 decrease in short contracts.

The NZD weakened significantly last week and reached the lower trend line at support around 0.7120.

Resistance: 0.7370-0.7450

The nearest support: 0.6900-0.6960

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