The Commodity Futures Trading Commission (CFTC) released the Commitments of Traders (COT) for the week ending last Tuesday.
Non-commercial traders raised net short positions by 12,000 contracts to 18,700. Large speculators have been expanding short positions for the second week. Net short positions have peaked since April 2018.
Commercial traders decreased net long position on EUR/USD contracts by 6,100 to 3,800. They have lowered positions for the second week after an almost 4-week increase.
Open interest dropped by some by 2,200 to 553,282 contracts. Bearish index of large speculators (short and long positions) amounts to 0.08 to 1.12 over the period under review.
Summary: COT reports on EUR/USD show soaring bearish sentiments in terms of the euro. Notably, the uptrend has been seen for 2 weeks already. Large traders have been expanding net position on the euro decline. At the same time, commercial traders almost completely reduced positions on the euro-dollar increase. Further trend development can promote a weakening of EUR/USD.
Notice: COT data is fundamental and used for mid- and long-term trading. Large speculators or non-commercial (banks, investment funds) usually trade in line with the trend. At the same time, small speculators (nonreportable positions) usually have no strong impact on the market. Net position is the difference between the number of contracts for buy and sale. Open interest means the total number of opened positions in the market.