Commitment of traders report (COT): 12 Dec 2022

 

Commitment of traders – as of Tuesday 6th December 2022:

• Net-short exposure to CAD futures fell to an 8-week low
• Large speculators were their least bearish on GBP futures in 39 weeks
• Traders were their most bullish on euro futures since February 2021
• Gross long exposure to DXY futures were at their lowest level in 15-months
• Overall, weekly volumes changes were on the low side and below +/- 8.4k contracts

 

Euro dollar futures (EUR):

We noted the initial reduction of gross shorts and flip to net-short to net-long exposure ahead of euro’s rally. Yet with the ECB’s overnight rate at 2% and the Fed’s at 4%, we can only expect so much upside from the euro where interest rate differentials are involved. Yet it is also worth noting that gross long exposure has reached a level which has seen bulls pull back several occasions over the past two years. Therefore, a potential scenario to monitor over the coming weeks for gross longs to turn lower and shorts move higher ahead of a potential turning point for EUR/USD.

 

Commitment of traders – British pound futures (GBP):

The British pound has continued to rise, but this is not a classic bullish rally as both gross longs and gross shorts are trending lower overall. And whilst traders remain net-short, what we are seeing is a general de-risking towards the British pound, only shorts are closing out faster than longs.

 

Commitment of traders – as of Tuesday 6th December 2022:

• Gross long exposure to palladium futures were at their highest level since March
• Net-long exposure to platinum futures rose to their highest level since March
• Traders were their most bullish on silver futures in seven months
• Net-long exposure to WTI futures fell to a 10-week low