Weekly COT Positioning: Sentiment On USD Improved Further, GBP Fought Back

According to calculations done by Reuters, large speculators eased their bearish bias on the Greenback for the seventh consecutive week. In fact, large players almost became net bullish on the Greenback after they reduced the value of their net short positions on USD from $1.92 billion to $643 million during the week ending on November 14.
And the latest Commitments of Traders (COT) forex positioning report from the CFTCreveals that positioning activity still broadly favors the Greenback but the pound was able to take back some lost ground.

And here is how positioning activity played out during the week ending on November 14, 2017.

Sentiment on the Greenback improved further during the week ending on November 14, so much so that net positioning on the Greenback almost became net bullish.And as has been the case during the past few weeks, sentiment on the Greenback improved broadly at the expense of the Greenback’s forex rivals.Interestingly enough, the most recent COT report already reflects how large players reacted to the U.S. Senate’s version of the tax reform bill.
And apparently, large players were not fazed by that, even though the Senate’s version is different when compared to the House’s version of the tax plan, particularly with regard to the implementation date since the Senate wants to slash corporate tax rates in 2019, which is a year later compared to the House’s version.
More than that, it’s possible that the improving sentiment on the Greenback shows that large players are expecting the tax reform bill to successfully push through despite the differences.