Weekly COT report for G10

11 October, AtoZForex.com, London – Scotiabank has published the latest weekly COT report for G10. The following are the main takeaways, analysis and currency relative exposures.

Weekly COT report

Sentiment $mns
06-Oct Bias Trend Position w/w chg.
EUR Bearish Decreasing -12513 -187
AUD Bearish Increasing -2927 487
CAD Bearish Decreasing -2686 461
JPY Bearish Decreasing -1830 472
CHF Neutral Neutral -513 -164
GBP Neutral Neutral -431 -238
MNX Neutral Neutral -157 1148
NZD Neutral Neutral -64 131
Gold Bullish Increasing 9960 1319
Total USD posn. (ex. Gold) 21121 -2110

Source: Scotiabank

Overall long USD exposure against major currencies remains stable in the region of USD20bn. This week’s data indicates that investors cut the aggregate USD long positions to USD21.1bn from last week’s USD23.3bn, mainly due to a short covering trade in the MXN, notes Scotiabank.

However, the lack of distribution and accumulation of positions broadly indicate that investors are overall on hold, perhaps until Fed prospects will be clearer.

“The short EUR bet remains IMM‐based investors’ biggest position,” the bank points. This week, net short EUR exposure has slightly increased, keeping with the incremental rise for the past few weeks. Yet, the recent net short build of USD190mn is just a mere one.

Although net shorts in GBP doubled, the exposure remains modest with USD438mn, “ditto for net CHF shorts,” Scotiabank adds.

Net short JPY bets, on the other hand, were cut by a decent USD472mn this week, yet keeping positioning light compared to the recent history.

“Net short CAD and AUD positions were cut back this week—the CAD trend liable to continue near‐term given the CAD’s latest gains,” the bank notes. Net short NZD trades were cut to relatively flat. All of which portray the current EM rally against the US dollar.

Think we missed something? Let us know in the comments bellow.

Share Your Opinion, Write a Comment