Traders preparing for a decline of EUR?
According to the COT (Trader Commitment) report provided by the Commodity Futures Trading Commission (CFTC), the week ending last Tuesday: Big speculators (non-trading) reduced their net position to buy EUR / USD in 5.1k to 106.7k. Large speculators began reducing their net buy positions 8 weeks after increasing their net buy positions. The net position started to decline from its highest level since March the 2nd. Hedgers (Commercial) reduced the EUR / USD net sell position by 3,6k to 182,7 thousand. After 8 weeks of accumulation, the hedging operators also began to reduce the net sales position. Open positions decreased by 11,5k to 778.1 thousand. This week, the speculative bullish index (the ratio of the number of contracts bought to the number of contracts sold) fell from 0.04 to 1.83.
Summary: The COT report of the EUR/USD currency pair reflects the growth of bearish sentiment in European currencies. After two months of accumulation, traders began to sharply cut their net positions as the euro rose. At the same time, the net position began to decline from the highest level in the last three months. The continuation of this trend may cause the euro/dollar to fall.