Head of Commodity Strategy
Summary: Speculators reversing back to a short JPY position gave the dollar long another boost last week.
Saxo Bank publishes two weekly Commitment of Traders reports (COT) covering leveraged fund positions in bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial.
Speculators continued to buy dollars in the week to October 15. The combined long against ten IMM currency futures reached $20.5 billion, a four-month high. The change was led by heavy selling of JPY which resulted in the position returning to a net short for the first time since late July.
The near 5% spike in Sterling failed to trigger much excitement with equal reductions in both short and long positions leaving the net-short unchanged at 73k lots, the least bearish since July but still elevated.
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