FX Futures Positioning: US Dollar, GBP, JPY, AUD | COT Report Summary
By Matt Simpson, Market Analyst
Date: 23/02/2026
Overview
The latest Commitment of Traders (COT) report reveals significant shifts in futures positioning for the US dollar, British pound (GBP), Japanese yen (JPY), and Australian dollar (AUD). Notably, dollar shorts have reached a five-year extreme, indicating deep pessimism among traders regarding the US dollar's performance.
US Dollar Positioning
Futures traders have increased their net-short exposure to the US dollar by $2.3 billion, bringing the total to -$22.8 billion, the most bearish level since March 2021. Despite this, large speculators have shifted to a net-long position on the US Dollar Index for the first time since June.
Key metrics include:
- EUR/USD: Large speculators reduced net-long exposure by 5.8k contracts.
- GBP/USD: Both large speculators and asset managers increased net-long positions.
- USD/JPY: Large speculators flipped to net-long exposure.
- USD/CAD: Net-long exposure reached a 3.5-year high among large speculators.
- AUD/USD: Asset managers marginally flipped to net-long exposure.
- NZD/USD: Asset managers trimmed net-short exposure to a 20-week low.
GBP/USD Positioning
The GBP/USD market is experiencing a mix of bearish initiation and bullish capitulation. Net-long exposure among large speculators has risen to a nine-week high, while negative sentiment persists, suggesting potential selling pressure in the coming weeks.
USD/JPY Positioning
Large speculators have shifted to net-long positions in JPY futures after a five-week period of being net-short. Despite this, the yen futures closed lower, indicating that upside potential for USD/JPY may be limited.
AUD/USD Positioning
Confidence in the Australian dollar is growing, with asset managers flipping to net-long exposure for the first time since October. The decline in short positions suggests a potential for consolidation or shallow retracement rather than a significant pullback.
Conclusion
The COT report highlights a complex landscape for FX traders, with diverging opinions on the US dollar and notable shifts in positioning across major currency pairs. As traders navigate these dynamics, the potential for further movements in the USD, GBP, JPY, and AUD remains a critical focus.