Forex: Speculators are long Euro positions for first time since December

Filed in British Pound, euro, Gold, Gold Bullion prices, swiss franc, US Dollar, Yen by on September 27, 2010 0 Comments

By CountingPips.com The latest Commitments of Traders (COT) report, released on Friday by the Chicago Mercantile Exchange, showed that futures speculators increased their bets for the euro against the dollar for a third consecutive week. Non-commercial futures positions, those taken by hedge funds and large speculators, were net long the euro against the U.S. dollar by 5,097 contracts as of September 21st following net positioning of -9,644 contracts on September 14th. This is the first time contracts have been in positive territory for the euro since early December 2009 when net euro contracts were positive by 22,151. The COT report is published every Friday by the Chicago Mercantile Exchange (CME) and shows futures positions as of the previous Tuesday. It can be a useful tool for traders to gauge investor sentiment and to look for potential changes in the direction of a currency or commodity. Each currency contract is a quote for that currency directly against the U.S. dollar, where as a net short amount of contracts means that more speculators are betting that currency to fall against the dollar and net long position expect that currency to rise versus the dollar. Open interest is the number of open contracts that have not been closed by a transaction or by delivery. The British pound sterling was the only major currency on the short side against the dollar last week in the CME futures market while the euro, Australian dollar, New Zealand dollar, Japanese yen , Canadian dollar, Swiss franc and Mexican peso had a net positive amount of contracts. The British pound sterling short positions edged to -8,989 as of September 21st after being

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Forex: Speculators are long Euro positions for first time since December

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