The error involved 10.6K contracts of euro longs when they were really short.  This week, both specs switched to the long side of the euro.

Last week, the biggest open position was short 117.2K of the Japanese yen, but specs took the position down to 107.2K this week.  That makes a long position of 113.5K in the Australian the biggest spec position.

Specs continue to favor the long side of the commodity currencies and added to those positions.  The total spec long the Australian, Canadian and New Zealand Dollar and USD short has gone up to 238.1K.  This is their biggest position in the last three months.

Please note the Swiss Franc comments.  Since the end of the cut-off date for this report, those long the SF and short the euro have had to deal with some major adversity.

• US Dollar Index: The OI increased slightly, up 3K as both spec groups made modest additions to their long positions.  The small specs are a 2 ratio long in the DI.  The large specs are net long 6.4K and changed the position little in the last week.


• Euro (EUR/USD): The OI in the euro increased by over 10% as both size specs flipped to the long side of the euro.  The total spec long is now 10.6K which flipped from a short euro position in the previous week.  (Please note there was an error in the previous week's report as the specs were reported long the euro and they were instead still short by 11.2K.)  It looks like the buying from under 1.31 to over 1.33 was new longs placing their bets.


• British Pound Sterling (GBP/USD): Both size specs added to their long positions during the period.  The total pound long increased to 46.1K, up from 42.5K in the previous period.  After the cut-off date for the data included in this report, the pound sold off sharply so the longs have paid a price.  We would guess there will be a reduction in pound longs on next week's report.


• Japanese Yen (JPY/USD):  The short spec yen position was reduced by 10K contracts during the week; however, the large spec remains a 2.8 ratio long and the small spec is a 2.7 to one long.  The total yen short remains quite large, 107.2K. The spreading OI is quite large, 28K, indicating a large option trade in the yen.


• Swiss Franc (CHF/USD): The small spec has been a 1.9 ratio long and the big spec has been a 3-to-1 long in the SF.  There were nominal reductions in the longs spec holding by both size specs.  Looking at the Swiss franc compared to the euro, there have been some major losses in the long SF versus the euro.  Perhaps this accounts for some of the Swiss franc market's long reduction.


• Canadian Dollar (CAD/USD): Large spec, despite being large longs, bought some more loonies and are now a 16.4-to-1 ratio long.  Small specs are also long but only by a 2.7 ratio.  The total spec long is approaching 99K.  The late week market action hurt the C$ longs.


• New Zealand Dollar (NZD/USD): Specs continue to buy the NZ$.  Small specs are approaching a 3 ratio long and the large specs a 4-to-1 long.  The Kiwi remains quite popular in the portfolio of those acquiring commodity currencies.  Some of the NZ$ strength may be against cross-selling of the yen.


• Australian Dollar (AUD/USD): Spec-buying in the A$ continues taking the open interest up and the total spec long higher.  The total A$ spec long is now 113.6K as the small specs hold a 2-to-1 long and the large hold about a 3-to-1 long. Despite the continued spec buying, with the consequent increase in the open interest, the A$ has been unable to break to the upside into new high ground.  Perhaps, however, we are judging this against the USD when the real play is against the yen.