According to the COT (Commitments of Traders) reports provided by the Commodity Futures Trading Commission (CFTC) - for the week ended last Tuesday:
Large speculators (NON-COMMERCIAL) reduced the net position to buy EUR/USD by 5.1 thousand contracts to 106.7 thousand. Large speculative players began to reduce their net buy position after increasing it for 8 weeks. The net position began to decline from the highest levels since March 2.
Hedgers (COMMERCIAL) reduced the net position for the sale of EUR/USD by 3.6 thousand contracts to 182.7 thousand. Hedger operators began to reduce the net position for sale also after an 8-week build-up.
Open interest decreased by 11.5 thousand contracts to 778.1 thousand.
The bullish index of large speculators (the ratio of the number of contracts for buying to the number of contracts for selling) fell by 0.04 to 1.83 for the week.
Summary: COT reports on the EUR/USD pair reflect the growth of bearish sentiment in the European currency. After a two-month build-up, traders began to cut a significant net position on the euro's rise. At the same time, the net position began to decline from the levels that were the highest in the last three months. The continuation of this trend may contribute to the decline of EUR/USD.
Note: COT report data is fundamental and is mainly used for medium and long-term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually trade according to the trend. Hedgers, COMMERCIAL (operators, large companies) usually trade against the trend. The net position is the difference between the number of buy and sell contracts (the green line on the chart is the net position of large speculators; the blue line is the net position of hedgers). Open interest is the sum of all open positions in the market.