COT: Dollar bears in control but JPY sold before BoJ meeting

  • USD sold off last week
  • Strong buying of EUR, GBP, AUD and CAD more than offset JPY selling
  • Profit-taking hit JPY ahead of Fed and BoJ meetings last week
  • Gross USD position vs eight IMM currency futures slumped to a short of $4.3 bn
  • Funds were least bearish on the euro since May 2014


 The gross dollar position fell sharply. Image: iStock

The US dollar continued to be sold last week, with strong buying of EUR, GBP, AUD and CAD more than offsetting JPY selling ahead of the Bank of Japan’s meeting. The gross dollar position against the eight International Monetary Market currency futures tracked in this report slumped by $2.6 billion to a short of $4.3 billion. A bearish dollar exposure of this magnitude was last seen in April/May 2014.

Speculative IMM currency positioning

Profit-taking hit the JPY ahead of Federal Reserve and Bank of Japan meetings last week.

Speculative IMM currency positioning

Funds were the least bearish on the euro since May 2014 ahead of the central bank meetings last week.

Speculative positioning in IMM EUR

The Canadian dollar turned net-long for the first time since last May when another oil price rally helped sentiment.

Speculative positioning in IMM CAD

— Edited by John Acher
Ole Hansen is head of commodity strategy at Saxo Bank. His Twitter account was cited byMarketWatch as one that investors should follow in 2016.


Commitments of Traders: IMM currency futures