COT Report – Positioning by Currency
-
Posted by - Date August 11, 2025
- Comments 0 comment
The Commitments of Traders (COT) Report is a weekly publication by the U.S. Commodity Futures Trading Commission (CFTC). It reveals how different market participants – commercial hedgers, large speculators, and small traders – are positioned in futures markets, including major currencies. For forex traders, the COT report is a unique sentiment indicator, showing where institutional money is flowing.
Why is it important? If non-commercial traders (speculators) build large long positions in EUR or GBP, it may signal strong bullish sentiment. Conversely, rising short positions can indicate growing pessimism. This helps traders align their strategies with broader market flows rather than short-term noise.
How to read it? Focus on net long/short differences and changes week over week. Sharp shifts often precede significant price moves. Many traders use the COT report in combination with technical analysis and macro data to improve timing and risk control.
