Committments of Traders Report
Positioning is neutral for most currenies, suggesting that the US dollar may continue strengthening.
US Dollar Index: The composite COT has dropped from high levels, which warns of a top. However, with speculative longs gradually decreasing and now back to more levels, confidence in a top is low.
Implications: neutral
EUR: Composite COT remains near historically low levels, which is suggestive of a bottom. However, speculative shorts have gradually declined and positioning is not considered extreme anymore. The euro could continue falling.
Implications: neutral
GBP: The interpretation of the British Pound COT numbers are the exact same as the interpretation of the COT numbers for the Euro.
Implications: neutral
CHF: Although the 52 week index turned from 0 at the end of October (which warns of a bottom (USDCHF top), positioning is no longer considered extreme and confidence in a low (USDCHF top) is low.
Implications: neutral
JPY: Bottoms in the USDJPY occur when speculators are extremely long the JPY (short USDJPY), which is not yet the case. Continue to favor Yen strength.
Implications: bullish
CAD: CAD positoning is neutral. The Composite COT is near 0. There is nothing worth noting.
Implications: neutral
AUD: Composite COT is at a level that previously indicated an important low (March 2006). This combined with the turn up from 0 in the 52 week index favors strength.
Implications: bullish
NZD: The NZD index has turned from 0. Speculators were recently net short the largest amount of NZD on record (the record only goes back a few years though). These are bullish signals.
Implications: bullish
DailyFX
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