Speculative USD longs have ticked up after pulling back for several months. As such, the trend towards USD buying may be back underway.

Latest CFTC Release dated June 15, 2010:

The COT Index is the percentile of the difference between net speculative positioning and net commercial positioning measured over a specific number of weeks (13). A reading close to zero is bearish if the currency in question has reversed from a uptrend and is bullish if the currency has been declining for a significant amount of time. A reading close to 100 is bullish if the currency in question has reversed from a downtrend and is bearish if the currency has been rallying for a significant amount of time.

Readings of 95 and higher as well as five and lower are in bold-faced red type to indicate potential market extremes. For example, an increasing index is bullish until the index is extreme (near 100), at which time the risk of a reversal or pause in the trend increases.

US Dollar


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Speculative USD longs have ticked up after pulling back for several months. As such, the trend towards USD buying may be back underway.

By Jamie Saettele of DailyFX.com