4 Jun 2014
Short covering rally in bonds - FXStreet
FXStreet (London) - Goncalo Moreira CMT, FXStreet Technical Analyst has taken a look at last weeks COT positioning and sees a short covering rally in bonds.
Key Quotes
“The net speculative position in the EUR futures market is bearish and building with sellers taking control of the market leading into this week's ECB meeting.”
“FXStreet's CoT oscillator is currently pointing down confirming the bearish bias, albeit far from the extreme lows seen in May 2013 when the euro was trading at 1.28/29.”
“A general pattern among majors was for the gross short currency futures positions to have increased. An exception in the latest reporting period was for GBP whose open interest continues to be high around 240k. According to our CoT oscillator, this contract is still trading in overbought territory even if not so overextended as four week ago.”
“After moderating the net short since December last year, speculators increased the net short yen last week and JPY still keeps the largest net short by a significant margin compared to other FX futures contracts (-59k).”
“The Commitment of Traders for the 10-year Treasury note futures reveals open interest escalating higher in this instrument. Both gross long and short contracts were trimmed in what is perceived as a large adjustment to positions. Specially on the short contracts which were reduced from 529k to 398 by non-commercials. With sellers flushing out of the market this can be seen as a large short covering in this market.”
Key Quotes
“The net speculative position in the EUR futures market is bearish and building with sellers taking control of the market leading into this week's ECB meeting.”
“FXStreet's CoT oscillator is currently pointing down confirming the bearish bias, albeit far from the extreme lows seen in May 2013 when the euro was trading at 1.28/29.”
“A general pattern among majors was for the gross short currency futures positions to have increased. An exception in the latest reporting period was for GBP whose open interest continues to be high around 240k. According to our CoT oscillator, this contract is still trading in overbought territory even if not so overextended as four week ago.”
“After moderating the net short since December last year, speculators increased the net short yen last week and JPY still keeps the largest net short by a significant margin compared to other FX futures contracts (-59k).”
“The Commitment of Traders for the 10-year Treasury note futures reveals open interest escalating higher in this instrument. Both gross long and short contracts were trimmed in what is perceived as a large adjustment to positions. Specially on the short contracts which were reduced from 529k to 398 by non-commercials. With sellers flushing out of the market this can be seen as a large short covering in this market.”