Tue, Sep 27, 2022 @ 05:33 GMT
HomeContributorsFundamental AnalysisCommitment of Traders Report (COT): Euro Bears Trim Exposure

Commitment of Traders Report (COT): Euro Bears Trim Exposure

Euro bears trimmed their bearish exposure to EUR futures last week, ahead of this week’s ECB meeting.

Commitment of traders – as of Tuesday 31st May 2022

  • Traders were long the US dollar by $14.1 billion, which is -$3.3 billion lower than the prior week
  • Traders increased net-short exposure to AUD futures for a fourth consecutive week and were their most bearish on the currency in 9-weeks.
  • The euro was the only major currency to see a weekly change of net exposure above 10k contracts
  • Net-long exposure to euro futures increased by 13.3k contracts

EUR futures:

Large speculators were their most bullish on euro futures since the middle of March last week. Whilst gross longs remained effectively flag, gross shorts closed for a second consecutive week as bears run for cover. The net-long indicators is by no means stretched to hint at any extreme, but it leaves a lot of potential for bears to continue closing out. The ECB meet on Thursday so traders may have a better understanding of just how hawkish ECB members really are.

Commitment of traders – as of Tuesday 31st May 2022

  • Traders were their least bullish on gold futures in 17-weeks
  • Net-long exposure to silver futures were at an 11-week low
  • Large speculators were net-short copper futures for a sixth consecutive week
  • Traders flipped to net-long exposure to heating oil futures

Copper futures:

It has been no major surprise to see traders remain net-short copper futures, due to the stringent lockdowns in China. However, now restrictions are being loosened then there’s less reason for traders to remain net-short. Whilst we’re yet to see strong evidence of bulls returning, there are signs that bears are closing out. Large speculators trimmed gross shorts for four weeks and managed funds have trimmed their shorts for the past three.

DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

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