Sterling leads selling as currencies turn active

Good Morning. This is your weekly COT Digest. Speculators liquidated longs and added new shorts in sterling in size this week. That was the main move on the tape.

GBP

The heaviest selling of the week: long liquidation and new shorts while still net short, -10.5% of the book. This marks a flip from new longs and short covering last week. Spot did not continue the selling from the report date close to the release close; it moved the other way, +0.3%.

CAD

Long liquidation and new shorts while still net short, -8.8% of the book. This is a second week of selling. Spot continued the selling from the report date close to the release close, -0.2%.

JPY

The book is a crowded short versus the prior 52 weeks. New shorts while still net short, -6.83% of the book. Spot did not continue the selling from the report date close to the release close; it moved the other way, +0.1%.

NZD

New shorts while still net short, -2.33% of the book.

EUR

New shorts while net long, -1.64% of the book.

Broad USD positioning showed new shorts with the index little changed from the report date close to the release close.

CHF saw new shorts; spot did not continue the selling from the report date close to the release close; it moved the other way, +0.3%.

GBP led with long liquidation and new shorts while net short.
JPY added new shorts into a crowded short versus the prior 52 weeks.
CAD extended selling with spot continuing lower.

Disclaimer: COT data reflects positioning and sentiment, not trade timing or price predictions.