Gross Short Currency Futures Rise off of Dollar Strength

There were three significant risky gross position adjustment one of the currency futures in the Commitment of Traders reporting week ending November 3.  They were all expanding the gross short positions. Speculators additional 30.9k contracts to raise the gross short dinar position to 207.2k.  It’s risen by 69k contracts in the past two weeks.

The bears increased the web short yen position through 14.9k contracts to Eighty five.3k.  In the past two weeks, it has elevated by nearly 33k contracts.  The actual gross short Swiss franc position doubled to 24.8k contracts. This is the biggest jump in more than four years. 

The jump in the yucky short franc position was adequate to swing the net placement from long 1.5k agreements to short 7.0k contracts.  Speculators were net really miss two weeks.  In contrast, speculators tend to be remain net long sterling futures, albeit marginally so (0.2k  contracts).  However, given sterling razor-sharp slide in recent times, many likely wished they had sold more. 

Speculators added to gross short currency positions with minor exceptions in the Canada and New Zealand dollars.  Because of the newfound dollar bullishness, this is not surprising.  What’s surprising is that speculators additionally added to gross long currency futures positions.

There were 2 minor exceptions, sterling, and the Canadian dollar, both slipped with a little more than 2k contracts.  The actual gross long peso position rose less by less than Twenty contracts, which we curved to zero.  

The bears designed a significant stand in US Treasury futures.  The gross short placement jumped by 87.3k contracts, the most since March 2011, to 570.9k.  The bulls pared back, reducing 10% of gross long placement or 41.3k contracts in order to 406.6k.

Since the end of the reporting period, the December 10-year note dropped a full point.  The net short position jumped to 164.3k contracts from -35.6k.  It is the third 7 days of net shorts.  In the middle of October, speculators were transporting a net long position (Seventeen.7k contracts). 

Speculators in the oil market pulled back.  Both longs and shorts were trimmed.  The actual longs were shaved by Six.2k contracts, leaving 493.4k.  Almost 16k gross short contracts were covered.  The bears are holding on to 247.2k short connections.  The net long position increased by 9.6k contracts to 246.2k.

Observations on the Speculative Placement in the Futures Market is republished with permission from Marc to Market