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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 04 June 2018 at 8:47 GMT

COT: Stubborn euro long despite raised political uncertainty

Head of Commodity Strategy / Saxo Bank
Denmark
By Ole Hansen

In the week to May 29 the speculative dollar short against nine IMM currency futures was reduced for a sixth consecutive week. The one-third reductions took the gross dollar short down to $6 billion, a significant reduction from the April 17 record of $29 billion. 

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Most of the reduction was driven by selling of IMM EUR with the net-long falling 15% to 93,000 lots (€11.6 billion). Considering the 7% sell-off in EURUSD during the past few months the net-long remains quite elevated at 61% of the record from April 17.

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One major surprise was the continued selling of IMM CHF despite its recent strength. Especially against the euro following renewed political uncertainty in Italy and Spain. The net-short rose by 16% to reach 43,431 lots ( CHF 5.4 billion), an 11-year high. 

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Financials:

In fixed income the political turmoil in Southern Europe helped support a reduction in bearish bets held by leveraged funds across the US yield curve. Considering the 30 basis point top to bottom move in US 10-year notes since mid-May the reduction, however, has been relatively small with the value of one basis point staying above $200 million.
 
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11 September
carlosdemarch carlosdemarch
why are there no more COT reports (currencies and commodities)? I didn't find them excellent to understand the market feelings.
11 September
carlosdemarch carlosdemarch
sorry, I did find them excelent.
05 October
edo edo
Someone from Saxo answer, please?

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