The most recent CFTC IMM data shows speculators reduced their EUR bearish bets though the market’s short position remains close to levels last seen in the summer of 2010.
The EUR non-commercial short position declined to 95k which is just shy of the May 2010 high of 113k. While non-commercial shorts reduced their position by over 1.5k contracts the decline in the net short position may be explained by a resurgence of EUR bulls with the non-commercial long position rising by 6.9k contracts. To put this data in perspective the cutoff date for the report was Tuesday December 6th, just prior to the ECB meeting and EU economic summit.
It is also worth noting that CHF shorts have climbed to their largest position since June.
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Russell Glaser is a Currency Analyst with ForexYard. Russell provides analysis in the FX spot market by employing fundamental research methodologies. In addition to currencies, Russell closely follows the correlation between the Commodities market and the movement of equities. His writings have been published on the ForexYard Trading Blog and associated partner sites. Prior to joining Forexyard, Russell Glaser served as a management consultant in the financial services industry, advising Fortune 100 companies. Russell holds a degree in finance from the Fisher College of Business at The Ohio State University.
