COT report: Purchasing positions on the US dollar rose for the third week

The Commitment of Traders Commitment Report (COT) issued by the CFTC last Friday showed the continued increase in buying positions on the US dollar during the week ending Tuesday, September 7th. This is the third weekly rise in a row.

According to the Commitment of Traders report, major speculators and hedge funds recorded a volume of buying positions on the US dollar estimated at about 21,465 contracts during the last week ending on Tuesday, September 7, compared to recording about 20,690 contracts during the previous week ending on August 31, with a weekly increase of about 775 contracts. . It shows through the index of the strength of the major non-commercial speculators compared to the past three years that the trend for the time being to buy has risen from 61.5% to 62.8% during the last week.

It is worth noting that non-commercial speculators are among the most important traders in the futures market, and the reason for this is that their trading causes the markets to move in a certain direction; Because they have huge accounts, and because they trade for profit, they follow the market trend strongly, buying in the uptrend and selling in the downtrend.

As for small investors, purchasing positions on the US dollar continued to rise during the past week, as it recorded about 5,599 contracts, after it had recorded about 5,493 contracts during the week ending on Tuesday, August 31st. It appears through the small investors’ index that the trend for buying continues to rise significantly to 98.4% during the last week, after it recorded 97.0% during the previous week.

Small investors or retail traders have smaller accounts, compared to commercial speculators and non-commercial speculators, and are usually opposite to the market trend, they are less successful than other classes, and tend to focus on the tops or bottoms of the market.

For commercial purposes, commercial speculators recorded a volume of selling positions on the US dollar estimated at 27,064 contracts during the week ending on September 7, an increase from the previous week’s reading of 26,183 contracts. The index of commercial speculators, which measures the strength of investors compared to the last three years, indicates that the current tendency to sell declined from 31.1% during the previous week to 29.6% during the week ending last Tuesday.

It should be noted that commercial speculators are those who want to protect themselves or hedge against unexpected price movements, and banks or institutions are commercial speculators who want to protect themselves or hedge against sudden movements in the prices of currencies or other assets from price volatility.

The Commodity and Futures Trading Commission (CFTC) issues the Commitment of Traders Report every Friday. The report measures the net buying and selling transactions of speculators in the futures markets, and this is an important source for measuring the strength of these traders’ influence in the markets.