The Currency Report

Large Currency Speculators significantly reduced net short positions in British Pound and Canadian dollar, latest CFTC data shows…

BP Chart

2016 03 21 BP

(Commitments of Traders Data)

The latest CFTC data shows large Currency Speculators significantly reduced net short positions in British Pound and Canadian dollar.  Significant percent change moves highlight one of the main goals of this report; which is to keep an eye on what large speculators have been doing over the longer term with their positions, with the assumption that large speculators are positioning in the direction of the longer term trend.

Given the magnitude of the reductions in net short position size in these two currencies; it could be further indication of profit taking by large speculators.  Due to the delayed dissemination of this information, this information should in no way be considered in any way as a trade recommendation or advice.

Highlighted Currency, net position and % change

Net Longs                                            Net Shorts

JY +45k, -30%                                     CD -16k, -34%

DA +17k, -33%                                   BP -13k, -72%

The most recent Commitments of Traders data shows some significant percentage changes in non-commercial futures only net positions from the prior week including the following:

A sharp 34.73% decrease from 25,781 to 16,826 contracts net short of the Canadian dollar, which represents 5.29% of open interest;

A statistically overstated 4,179.07% reversal to long 5262 contracts from short just 129 contracts of the Swiss Franc, which represents 13.39% of open interest;

A striking 72.21% decrease from 49,005 to 13,619 contracts net short of the British Pound, which represents 13.98% of open interest;

A trimming 30.85% decrease from 64,333 to 45,489 contracts long of the Japanese Yen, which represents 14.17% of open interest;

A minor 7.70% increase from 72,007 to 77,555 contracts net short of the Euro, which represents 1.72% of open interest;

A significant 43.78% decrease from 29,195 to 16,413 contracts long the Australian dollar, which represents 12.78% of open interest;

A large 33.62% decrease from 26,378 to 17,511 contracts net long of the US Dollar Index, which represents 17.85% of open interest;


For those interested in Stock Index Futures, it may be of interest that over the same period large speculators increased (basically maintained) their net short positions in E-Mini S&P 500 Stock Index Futures by 0.14% from 205,655 to 205,945 contracts.  Feel free to contact me directly for more specific information.

For more information on FuturePath Trading, LLC, PhotonTrader and other trading software demos as well as our Futures and Forex Brokerage services email or call 312.987.2080.

Good Trading,

Paul Kavanaugh

PhotonTrader Demo

There is a substantial risk of loss in trading futures and options. Futures, options and foreign exchange trading are not appropriate for all investors.  Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.  FuturePath Trading, LLC, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.



Paul Kavanaugh

About Paul Kavanaugh

Paul Kavanaugh has been active in the commodity markets as an NFA member for 24 years. He specializes in working with clients by providing innovative personalized value-added services. His guidance with regards to risk management has attracted large commercial hedgers. His 2 1/2 decades of experience in navigating commodity bull and bear markets and extremes in volatility, while maintaining an even keel temperament, has made him an appreciated right hand man to select CTAs and professional traders. Paul’s early apprenticeship with one of the more renowned pioneers of systems development and seasonal work landed him position as Senior Analyst for one of the world’s largest clearing firms at the time. His published currency analysis achieved a remarkably broad following. He then branched out to supporting traders through brokerage services, often 24 hours round the clock. Paul has been happy to share his knowledge with new clients. His warm-hearted enthusiasm for both the markets and people provides an old school blend missing in today’s hard and fast world of electronic trading. At the same time, his current affiliation with the long established Independent Brokerage Firm, FuturePath Trading, LLC, allows him to offer clients the resources of multiple Clearing firms and execution platforms. Paul received his degree in Economics from Albion College in Michigan. He has been a frequent contributor to CBS, CNBC, and the WSJ over the years.