Weekly G10 COT report

28 September, AtoZForex.com, London – Scotiabank has summarized and shared the key takeaways from the weekly COT report, indicating a further decrease in the USD bull numbers. Is the sentiment slowly but surely turning?

Weekly G10 COT report

Sentiment $mns
25-Sep Bias Trend Position w/w chg.
EUR Bearish Decreasing -11264 597
AUD Bearish Increasing -3745 -836
CAD Bearish Decreasing -2893 661
JPY Bearish Decreasing -2463 320
MNX Neutral Neutral -366 1291
CHF Neutral Neutral -240 -726
NZD Neutral Neutral -222 -89
GBP Neutral Neutral 122 469
Gold Bullish Increasing 6875 2504
Total USD posn. (ex. Gold) 21072 -1686

“IMM‐based investors responded to the volatility in global markets that followed in the wake of the FOMC’s rate decision on September 17th in rather mixed fashion but the overall result was a further reduction in the aggregate bull bet on the USD on the IMM to the lowest in a little more than a year,” Scotiabank begins.

Net short EUR sell positions amount to the largest exposure for IMM players. The result was a short lived EUR stay higher rally higher around 1.15 spot levels following the Fed.

However, investors were not exactly discriminating in positioning. “Data reflect a decent reduction in the net short bet on the JPY” the major bank points, which makes sense due to JPY’s historical role of safe haven asset in times of heightened risk.

Against a backdrop of concerning China’s economic developments, investors boosted net shorts on AUD in the latest week. Yet, bearish bets on the CAD were cut back significantly. The positioning divergence is clearly seen in a cross trade of AUDUSD, when the cross only recently turned lower from the major 0.95 area in spot terms.

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