Commitment of traders report (COT): Euro bears trim exposure

Research
Matt Simpson financial analyst
By :  ,  Market Analyst

Commitment of traders – as of Tuesday 31st May 2022

  • Traders were long the US dollar by $14.1 billion, which is -$3.3 billion lower than the prior week
  • Traders increased net-short exposure to AUD futures for a fourth consecutive week and were their most bearish on the currency in 9-weeks.
  • The euro was the only major currency to see a weekly change of net exposure above 10k contracts
  • Net-long exposure to euro futures increased by 13.3k contracts

 

20220606cotFXcia

 

Read our guide on how to interpret the weekly COT report

EUR futures:

Large speculators were their most bullish on euro futures since the middle of March last week. Whilst gross longs remained effectively flag, gross shorts closed for a second consecutive week as bears run for cover. The net-long indicators is by no means stretched to hint at any extreme, but it leaves a lot of potential for bears to continue closing out. The ECB meet on Thursday so traders may have a better understanding of just how hawkish ECB members really are.

 

20220606cotEURcia

 

Commitment of traders – as of Tuesday 31st May 2022

  • Traders were their least bullish on gold futures in 17-weeks
  • Net-long exposure to silver futures were at an 11-week low
  • Large speculators were net-short copper futures for a sixth consecutive week
  • Traders flipped to net-long exposure to heating oil futures

 

20220606cotCOMMcia

 

Copper futures:

It has been no major surprise to see traders remain net-short copper futures, due to the stringent lockdowns in China. However, now restrictions are being loosened then there’s less reason for traders to remain net-short. Whilst we’re yet to see strong evidence of bulls returning, there are signs that bears are closing out. Large speculators trimmed gross shorts for four weeks and managed funds have trimmed their shorts for the past three.

 

20220606cotCOPERcia

 

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