The latest data for the weekly Commitment of Traders (COT) report, released by the Commodity Futures Trading Commission (CFTC) on Friday, showed that large traders and currency speculators increased their bullish bets for the US dollar last week for a second straight week and pushed the aggregate speculative bullish position to its highest level in five weeks.
Non-commercial large futures traders, including hedge funds and large speculators, had an overall US dollar long position totaling +$8.01 billion as of Tuesday July 12th, according to the latest data from the CFTC and dollar dollar-PDamount calculations by Reuters. This was a weekly change of +$3.83 billion from the +$4.18 billion total long position that was registered on July 5th, according to the Reuters calculation that totals the US dollar contracts against the combined contracts of the euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.
The US dollar speculator position has now been in positive (long) territory for eight straight weeks and is at its highest level since June 7th when the bullish position was +$11.3 billion.
Last week’s data showed the major currencies that improved the most against the US dollar were the Australian dollar (+11,313 weekly change in contracts), Mexican peso (+7,685 contracts) and the Canadian dollar (+5,658 contracts).
The New Zealand dollar (+2,414 contracts) also saw a small gain in net speculative contracts last week.
The currencies on the downside of speculative bets versus the dollar were the the Japanese yen (-16,023 weekly change in contracts), euro (-12,333 contracts), British pound sterling (-11,036 contracts) and the Swiss franc (-1,960 contracts).
Australian dollar bets increased for a third week and are in long territory for a second week.
Canadian dollar and Mexican peso positions have each gained for three weeks, respectively. New Zealand dollar positions are up for four straight weeks.
Euro positions have declined for four weeks and are at the lowest level (or most bearish level) since January 26th when positions equaled -127,215 contracts while British pound positions fell to their worst position in five weeks.