FX Options Update: February 20, 2019
Saxo Bank's latest report on the FX Options space is now live, with a look at EURUSD vols and how gold has broken out of its range and is still trending higher.
Head of Commodity Strategy
To download your copy of the Commitment of Traders: Forex report for the week ending August 21, click here.
Leveraged funds continued to sell energy and metals during the week to August 21. Grain traders were net-buyers as they continued to struggle to find the direction amid mixed signals. Soft commodities led by the Brazilian real-dependent commodities of sugar and coffee continued to be sold.
As it turned out it was also a week where funds got wrong-footed by the market. Oil, gold, coffee and sugar were all sold into a rising market while soybeans and corn were bought into a falling market.
The gold net-short hit a fresh record after the first signs buying was more than offset by additional short-selling. The net-short at 79,000 lots was more than three times the size of the previous record from December 2015. The silver short jumped by 26% but stayed well below the previous record.
HG copper was bought for a second week. This came despite seeing the price drop to a 14-month low before recovering on Asian LME stock draws and a weaker dollar. The limited amount, however, still highlights a market that remains concerned about the impact of trade war.