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USD Offered, GBP/USD Flips Web Lengthy & CAD Shopping for Boosted – COT Report


US Greenback, GBP/USD, USD/CAD COT Report –Evaluation

  • USD Offered for Second Consecutive Week
  • GBP/USD Flips Web Lengthy
  • CAD Shopping for Picks Up

USD Offered, GBP/USD Flips Web Lengthy & CAD Shopping for Boosted – COT Report

Within the reporting week to October 19th, internet USD longs slipped for a second consecutive week. That is largely in becoming with the worth motion, which has seen the dollar pullback from its YTD excessive. Nonetheless, this seems to be extra of an adjustment in positioning versus the start of a pattern decrease.

Elsewhere, the Pound flipped to internet lengthy for the primary time in a month. This had largely stemmed from real-money shopping for (+$2.4bln) with traders gearing up for an sooner than anticipated charge hike from the Financial institution of England. In flip, as we close to the pivotal November 4th charge choice, it’s probably that speculators will add to GBP longs. That being stated, with my view that the bar has been set excessive for the Financial institution to shock on the hawkish aspect, the danger is geared in direction of a disappointment even within the occasion of a hike given the present market pricing and thus this leaves the Pound susceptible to a pullback.

Throughout the commodity-linked currencies, Canadian Greenback shopping for picked up notably as rising oil costs continued to lend help. Moreover, with the Financial institution of Canada trying to tighten coverage, this has been one other issue for speculators piling into the Loonie. In the meantime, the Australian Dollar noticed a slight discount in internet shorts, nevertheless, whereas the Aussie has made good floor this month, the pair has struggled to take care of a foothold above the 0.7500 deal with. In flip, with copper prices easing a contact, the bias for AUD could also be a promote on rallies.

Funding currencies have been out of favour as internet shorts in JPY and CHF grew by $2.97bln and $0.6bln respectively. In an setting of rising equities and yields there was little urge for food to hunt out low yielders, except for the truth that Japanese Yen promoting had hit extremes, nevertheless, consumers are more likely to re-emerge on cross-JPY and CHF dips, notably towards high-yielders.

Weekly FX Positioning

USD Sold, GBP/USD Flips Net Long & CAD Buying Boosted – COT Report

Supply: CFTC, DailyFX (Covers as much as October 18th, launched October 22nd)

The Analytical Abilities of the COT Report

How to Read the CFTC Report

US Dollar Positioning

USD Sold, GBP/USD Flips Net Long & CAD Buying Boosted – COT Report

Supply: Refinitiv, DailyFX

GBP/USD Positioning

USD Sold, GBP/USD Flips Net Long & CAD Buying Boosted – COT Report

Supply: Refinitiv, DailyFX

USD/CAD Positioning

USD Sold, GBP/USD Flips Net Long & CAD Buying Boosted – COT Report

Supply: Refinitiv, DailyFX

If you need to obtain the total COT FX breakdown, contact IG.





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