Forex 5 minutes to read

Dollar long cut by the most in 16 months ahead of FOMC

Ole Hansen

Head of Commodity Strategy

Summary:  Speculators cut bullish dollar bets by the most in 16 months ahead of last week’s FOMC meeting, which helped send the greenback to the biggest weekly loss since February 2018.


Saxo Bank publishes two weekly Commitment of Traders reports (COT) covering leveraged fund positions in commodities, bonds and stock index futures. For IMM currency futures and the VIX, we use the broader measure called non-commercial.

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The gross dollar long against ten IMM currency futures was cut by 28% to a four-month low with more than half of the $8 billion reduction to $20.8bn being due to a 40% reduction in the EUR short to the lowest since February. The JPY short was trimmed by 63% or $3.3bn, a one-year, low while GBP and the commodity currencies were sold.
Financials:
Who is holding positions across the US yield curve?

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