COT data of May 8th 2012

British Pounds - The close on Tuesday of last week was 1.6160, with prices pausing after some improvement from our last posting. Prices since then have tended to ease, in line with our expectations, and we feel this tendency will probably continue.

Latest figures show Commercials raising their share of an increasing Total Open Interest, at 61.2%, compared to a reduced 23.6% for Large Specs and a not-much-changed 15.2% for Small Specs. Nett positions show Commercials at minus 24.3 (from plus 13.8 on April 10th), Large Specs at plus 23.6 (compared to minus 12.9), and Small Specs at plus 11.6 (versus minus 0.9). Split down, the figures show Commercials hold 49.1% of total Longs, Large Specs have 29.9%, and Small Specs have 21.0%. On the Short side, Commercials now hold 73.4% (a high number), Large Specs 17.2% (low), and Small Specs 9.4% (comparatively low).

The significant changes show Large Specs have added to Longs and reduced their Shorts, while Commercials have added to Shorts - bearish ....