FXStreet (Barcelona) – The Brown Brothers Harriman Team shares the key observations from the Commitments of Traders Report for the Week ending 9th June.
Key Quotes
“There were two significant (10k contracts) position adjustments. The gross short euro position was cut by 24.4k contracts to 190.6. It is the biggest short-covering since March 2014. Recall that the gross short euro position peaked in March at 271k contracts. This reduction in the gross short position accounts for the bulk of the adjustment of the new position. The speculative net short euro position has fallen from by about 90k contracts since peaking in early April.”
“The other significant position adjustment was speculators continued to amass a large short yen position. In the reporting period ending June 9, speculators grew their gross short yen position by 26.4k contracts to 158.7k. Since the end of April, when the gross short yen position had fallen to 54k contracts, it has grown nearly three-fold. The net short position stands at 116k contracts. In late-April speculators were short 5.5k yen contracts.”
“Speculators generally added to short currency futures positions. The euro was an exception. So was the Swiss franc. The gross short position was trimmed by 800 contracts. Speculators have been net long francs since early April.”
“The speculative net short 10-year Treasury note futures was halved to 36.6k contracts. Gross longs rose by 71.6k contracts to 412.4k. While they may have been trying to pick a bottom, the bears grew went with the momentum, and expanded gross short positions by 34.6k contracts to 449k.”
“The speculative net long oil futures position was pared by 13.7k contracts to 325.8k. This was a function of gross longs being trimmed by 10.7k contracts (to 483.8k) and a small increase (3k) of gross short positions (to 157.9k contracts).”
(Market News Provided by FXstreet)