US dollar: speculators increased sales by 24%

The Commodity Futures Trading Commission (CFTC) reported, for the week ending last Tuesday, that the Commitments of Traders (COT) reports showed.

Non-commercial large speculators decreased their net position to purchase contracts on the dollar index by 1.6 thousand, bringing it down to 19.1 thousand. This decrease follows a 3-week period of growth, which had brought the net position to its highest level since December 13 of last year.

Operator hedgers decreased their net position to sell contracts on the dollar index by 2.4 thousand, bringing it down to 18.3 thousand. This follows a 3-week period of increasing the net position, which had reached its highest level since October 17.

The open interest rose by 1.5 thousand contracts, bringing the total to 39.4 thousand.

The ratio of the number of contracts to buy to the number of contracts to sell for the bullish index of large speculators decreased by 0.67 over the week, bringing it to 2.97.

Data from the COT dollar index (USDX) indicates a significant rise in bearish sentiment towards the US dollar. After a gradual 3-week buildup, traders drastically decreased their net position on dollar growth. At the same time, the net position of large speculators began to decrease from the highest levels in nearly 12 months. The net position of hedgers was the lowest it had been since September 19. Large speculators increased their sales by 24% over the week. If this trend continues, it could lead to a decrease in the value of the US dollar.

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade in line with the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, usually have little impact on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually trade against the trend (black line). The net position is the difference between the number of buy and sell contracts. Open interest is the total of all open positions in the market.