NZD leads currency buying as JPY sees selling

Good Morning. This is your weekly COT Digest. Speculators added to NZD in size this week. JPY saw selling, but that was the smaller side of the tape.

NZD

The book is net short, but it sits as a crowded long versus the prior 52 weeks. New longs and short covering, +18.66% of the book. This is a second week of buying. Spot did not continue the buying from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep); it moved the other way, -0.1%.

CAD

Short covering while still net short, +6.89% of the book. This is a second week of buying. Spot continued the buying from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep), +0.5%.

EUR

New longs and short covering while still net short, +2.63% of the book. This is a second week of buying. Spot continued the buying from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep), +0.2%.

AUD

New longs while still net short, +1.96% of the book.

JPY

Long liquidation and new shorts while still net short, -9.04% of the book. This is a second week of selling. Spot did not continue the selling from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep); it moved the other way, +2.4%.

CHF

This marks a flip from new longs and short covering last week. Long liquidation and new shorts while still net short, -4.9% of the book. The book is net short, but it sits as a crowded long versus the prior 52 weeks. Spot did not continue the selling from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep); it moved the other way, +0.2%.

GBP

This marks a flip from new longs last week. Long liquidation while still net short, -2.18% of the book. Spot was little changed from the report date close (Tue 1 Sep) to the latest price when the report was released (Fri 4 Sep), +0.0%.

Broad USD positioning showed long liquidation and new shorts. Index continued the selling from the report date close to the release close, -0.5%.

NZD posted the largest move with new longs and short covering while still net short.
JPY saw long liquidation and new shorts while spot moved the other way.
CHF flipped to selling into a crowded long versus the prior 52 weeks.

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