20 Jan 2014
Flash: COT offers directional clues for Dollar, Yen and Euro - FXstreet
FXstreet.com (Barcelona) - Goncalo Moreira CMT, FXstreet.com Technical Analyst comments that last weeks COT report offers direction clues for USD, JPY and EUR.
Key Quotes
“The net long USD position rose to an aggregated total equal to 42.927 contracts on January 14th, as the most recent CFTC data shows (futures only). This is well below the August 75k and December 49k descending peaks. After a four week plunge into a negative net position, numbers become positive again with a timid 3839 contracts for the dollar index.”
“Speculative non-commercial accounts continue to reduce their net long Euro positioning since the start of the year, despite the number of buy contracts still modestly surpasses that of sell contracts. A minor increase of open interest is indicative of liquidation of longs and addition to shorts.”
“Speculators remain impressively net short in the Yen as well as the open interest above 200k, but reducing their short position for three consecutive weeks now, since the highs of 105.50 against the dollar. The below relative strength study shows how specs (blue line) reject the overbought levels from December.”
“Benefiting from these conditions seems to be the EUR/JPY cross in its gently decline to 140.50, now eyeing 138.50.”
Key Quotes
“The net long USD position rose to an aggregated total equal to 42.927 contracts on January 14th, as the most recent CFTC data shows (futures only). This is well below the August 75k and December 49k descending peaks. After a four week plunge into a negative net position, numbers become positive again with a timid 3839 contracts for the dollar index.”
“Speculative non-commercial accounts continue to reduce their net long Euro positioning since the start of the year, despite the number of buy contracts still modestly surpasses that of sell contracts. A minor increase of open interest is indicative of liquidation of longs and addition to shorts.”
“Speculators remain impressively net short in the Yen as well as the open interest above 200k, but reducing their short position for three consecutive weeks now, since the highs of 105.50 against the dollar. The below relative strength study shows how specs (blue line) reject the overbought levels from December.”
“Benefiting from these conditions seems to be the EUR/JPY cross in its gently decline to 140.50, now eyeing 138.50.”