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Commitment of Traders (COT): Jump in Euro Shorts, Drop in USD Longs


The CFTC Positioning Report, also known as the Commitment of Traders (COT) report for the week ended October 4 reports a drop in the net USD long positions for the first time in 8 weeks. However, levels are still seen to be high.

The net Euro short positions were also seen to have climbed higher last week, reflecting the ECB’s stimulus package.

The GBP was able to shake off sentiments of a hard Brexit last week, as the number of short positions on the GBP in all pulled back for the 4th week in a row.

As risk sentiment generally shifts to a risky one, the CFTC Positioning report also indicates that there has been a 4-week pullback the net JPY long positions. However these JPY longs remain the dominant position on the market of the two trading sides. This marks the 10th consecutive week that the JPY net longs have remained in the market.

The optimistic view that has preceded the US-China trade talks allowed the AUD to cut back on its net short positions, assumed previously by the dovish rate cut action the RBA took 2 weeks ago.

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[vc_single_image image=”14654″ img_size=”medium” alignment=”center” style=”vc_box_rounded” onclick=”custom_link” img_link_target=”_blank” link=”https://www.investingcube.com/q4-global-market-outlook-eurusd-gold-crude-oil-bitcoin-sp-500/”]The drop in crude oil prices as a result of restoration in Saudi output as well as the cut in oil demand forecast by the IEA, weighed on the Canadian Dollar. This is why the COT report shows a reduction in the net CAD longs. The net positions on the CAD remain longs, buoyed by a still-hawkish Bank of Canada.

The Commitment of Traders (COT) report also shows that the net short positions in the CHF have dropped. This reflects the interplay between the CHF as a safe haven asset on one hand, and the declaration by the Swiss National Bank on its readiness to intervene to prevent the CHF from being too strong.

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