The biggest take away from this week’s COT report was a build in the net long loonie position to levels not seen since early 2013. Non-commercials also scaled back on bullish euro bets and bearish yen bets and added a little to the Aussie net long.
It was the tenth consecutive week that loonie sentiment improved. Speculators have been adding over 10,000 contracts to the gross long every week for the past four weeks. The net long rose from 26,613 contracts to 42,247 contracts. The weekly build was almost entirely attributed to a build in gross long contracts as gross short positioning declined by only 1,525 contracts.
Euro bulls scaled back for a second consecutive week. The net long position declined to 82,637 from 90,842 contracts with the draw in the gross long outpacing by the build in gross shorts by about three to one.
The euro position is the largest net long among the major currencies by a significant margin. In dollar terms, the euro is held net long by roughly $12 billion compared to the second largest net long, the Australian dollar, at roughly $5 billion.
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