US dollar: speculators increased sales by 47%

The Commodity Futures Trading Commission (CFTC) COT (Commitments of Traders) reports for the week ending on Tuesday, April 28th, were released by the CFTC.

For the second week in a row, large speculators (NON-COMMERCIAL) have decreased their net buying position on the dollar index by 2.3 thousand contracts, bringing it down to 12 thousand. This follows a period of nearly 6 weeks in which they had been steadily increasing their net position. Since January 31st, the net position has been steadily declining, reaching its lowest level since May 23rd.

Hedgers (COMMERCIAL) decreased their net sell position on dollar index contracts by 3,000 contracts to 13,600. This marks the second consecutive week that hedger operators have reduced their net sell position.

The open interest rose by 2.3 thousand contracts, bringing the total to 28.9 thousand.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators decreased by 1.03 over the week, bringing it to a total of 2.38.

The Commitment of Traders (COT) report data on the dollar index (USDX) has revealed a growing bearish sentiment towards the US currency. Over the past week, traders have significantly increased their reduction of the net position on the dollar, resulting in the net position becoming minimal over the past month and a half. Large funds have also increased their dollar sales by 47% in the same period. If this trend continues, it could lead to a further decline of the US currency.

COT report data is essential for medium and long-term trading, and is mainly used by large speculators, NON-COMMERCIAL (banks, investment funds). These traders usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, however, have little influence on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually go against the trend (black line). The net position is the difference between the number of buy and sell contracts, while open interest is the total of all open positions in the market.