COT Report Update – EUR Short Covering Continues After Retreat From Record High 

Commodity Futures Trading Commission (CFTC) data from Friday shows that large speculators (non-commercials) from the CME (Chicago Mercantile Exchange) have seen further covering of short EUR FX wagers for the second week in a row. The net EUR position is now back around the early May level at 141,066 net short contracts. A record net short contract level of -214,418 was hit on the 5th June but the Greek bailout amongst other factors has seen strong sentiment reversal.

This is a drop of 27% on the prior week and a net $22.4 billion. The long USD positioning has likewise seen a major shift in sentiment as it reached a net $22.3 billion;  the Fed’s extension of Operation Twist has dominated dollar sentiment this week as it cited significant downside risk to the economy.

The COT report gives a weekly breakdown of the previous Tuesday’s open interest and is available (for free) from the CFTC.  We use this data to get a high level overview of how the large institutions are positioned.