Chart 1: Short bets on the Japanese yen are close to all time highs
JPY/USD" title="Yen COT Positioning vs. JPY/USD" height="695" width="899">
Two interesting charts from this weeks CFTC commitment of traders report. Japanese yen continues to remain in a downtrend and is currently re-testing its recent panic low. Interestingly, the amount of bears (or should I say sharks) circling this currency is now close to all time highs. Over 16 billion dollars is outlaid towards net short position as of last Tuesday, in expectation that the currency will fall further. Recent fall in the ten has helped the stock markets from US to Japan push towards new highs, as already discussed last month.
Chart 2: British Pound is breaking out from a long term range
GBP/USD vs. COT Positioning" title="GBP/USD vs. COT Positioning" height="695" width="899">
On the other hand, the situation in the British pound is completely opposite. After being one of the most hated currencies in the world with continuously large short bets (even I shorted the currency from Sept '12 to March '13), the British pound is breaking out technically of its 5 year consolidation. The majority of investors are very bullish on the pound (via sentiment surveys), however the net long positioning isn't extremely high.
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Currency COT Update: Bears Circling Yen, Pound Bullish
Published 12/08/2013, 02:40 AM
Updated 07/09/2023, 06:31 AM
Currency COT Update: Bears Circling Yen, Pound Bullish
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