The Currency Report

Large Currency Speculators trimmed net short Euro bets by over 46%, latest CFTC data shows…

2016 04 18 Euro

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(Commitments of Traders Data)

The latest CFTC data indicates Large Currency Speculators trimmed net short Euro bets by over 46%.  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.

We have also been noting the recent reduction in net short positions in Canadian dollar, and the reversal to net long Canadian dollar from last week’s report has held, with Large Specs adding to new net longs.  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

CD +2k, +2,358%                               EU -52k, -46%

D6 +35k, +30%

 

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:

An overstated 2358.76% increase from 97 to 2,385 contracts net long of the Canadian dollar, which represents 2.12% of open interest;

A significant 29.66% increase from 39574 to 51,310 contracts net short of the British Pound, which represents 4.97% of open interest;

A building 10.18% increase from 60,073 to 66,190 contracts long of the Japanese Yen, which represents 3.41% of open interest;

A massive 44,413% decrease from 96,464 to 52,051 contracts net short of the Euro, which represents 46.04% of open interest;

A large 30.83% increase from 26,845 to 35,122 contracts long the Australian dollar, which represents 6.24% of open interest;

A key 20% decrease from 17,315 to 13,849 contracts net long of the US Dollar Index, which represents 5.87% of open interest;

(Source: www.CFTC.gov)

For those interested in Stock Index Futures, it may be of interest that over the same period large speculators trimmed their net short positions again in E-Mini S&P 500 Stock Index Futures by 14.15% from 104,210 to 89,461 contracts.  Note the similarity of short covering in S&P to recent Canadian dollar activity.  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 paul@fptrading.net or call 312.987.2080.

Good Trading,

Paul Kavanaugh

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Linda Raschke Leader-Follower Program Webinar

With Paul Kavanaugh of FuturePath Trading, LLC
Wednesday April 20, 2016 at 3:30 pm Central Time

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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.

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