9 Jun 2015
EUR CoT: Major increase in asset managers' short bets
FXStreet (Bali) - Open interest in EUR/USD was relatively unchanged in the futures positioning during the week up to June 2nd, with short-covering dominating price action before selling later in the week, exacerbated by a stellar US NFP report.
The bullish action up to June 2nd saw a modest increase of large spec longs, while in the lev funds community, there was a slight uptick in long-side commitment while lev shorts were caught wrong footed, as seen by the big reduction.
Commercials continued not interested on buying near the lows early in the week - June 1st -, perhaps expecting lower prices to load up? Meanwhile, dealer shorts were reduced on the move up, suggesting the upleg was mainly a withdraw of liquidity/stop loss hunting, with no real substance behind. Interestingly, asset managers short commitment increased quite significantly, further implying topside should be well capped.
The bullish action up to June 2nd saw a modest increase of large spec longs, while in the lev funds community, there was a slight uptick in long-side commitment while lev shorts were caught wrong footed, as seen by the big reduction.
Commercials continued not interested on buying near the lows early in the week - June 1st -, perhaps expecting lower prices to load up? Meanwhile, dealer shorts were reduced on the move up, suggesting the upleg was mainly a withdraw of liquidity/stop loss hunting, with no real substance behind. Interestingly, asset managers short commitment increased quite significantly, further implying topside should be well capped.