COT Report Reveals Shorts At Record High (FXE)

The weekly Commitment of Traders from the IMM currency futures were reported just before the weekend. There are several noteworthy developments.

First, as of last Tuesday, the net short speculative position was a record at 43.7k contracts. The subsequent price action and open interest warns that the net short were extended in recent days.

Second, the net speculative yen positions swung to the long side (+7.1k vs -4.3k). This is the first time the specs have been net long yen since mid-December.

Third, sterling shorts were extended to 33.9k from 27.1k the previous week. While the net speculative position has not been long sterling in over a year, this is the largest net short position since late October.

Fourth, the net speculative position switched to short Swiss francs (-1.8k vs +5.7k). The speculative community has been net short Swiss francs in late December through early January.