According to the most recent Commitment of Traders (COT) data from the CFTC, there are increasing disparities in positioning across leading foreign exchange futures. Although prices in several currency markets remain steady, the current trader positioning indicates that many participants may be entering trends late, which could heighten the chances of market pullbacks or forced position changes in the near future.
Large speculators are displaying more pronounced differences in their stances on major FX contracts. Sentiment toward the US dollar appears to be leveling off, while the Japanese yen has shifted to a net bearish position among these traders. Meanwhile, the Australian dollar is seeing heavy positioning even after its recent recovery. Overall, several markets are signaling late-stage sentiment extremes rather than the start of new trends.