CFTC Reports British Pound Net Long Position at 42,857 Contracts for Week Ended June 17, 2025.

CFTC Reports British Pound Net Long Position at 42,857 Contracts for Week Ended June 17, 2025.

The Commodity Futures Trading Commission (CFTC) has released its latest Commitments of Traders (COT) report, revealing that net long positions in British Pound futures reached 42,857 contracts for the week ended June 17, 2025. This data indicates a significant increase in the number of traders betting on a rise in the value of the British Pound (GBP) against the US Dollar (USD) [1].

The report highlights that commercial traders, who typically take positions based on their need to hedge their exposure, held a net long position of 21,100 contracts. Meanwhile, non-commercial traders, who are often speculative investors, maintained a net long position of 21,757 contracts. This distribution suggests a strong bullish sentiment among both commercial and non-commercial traders [1].

The latest COT report follows a period of market volatility, with the GBP/USD pair experiencing significant fluctuations. Over the past four weeks, the GBP/USD exchange rate decreased to a 4-week low of 1.34. However, the British Pound has shown resilience, gaining 0.08% over the past four weeks and increasing by 5.88% over the last 12 months [2].

Market analysts have attributed the recent strength of the British Pound to several factors, including the UK's economic recovery and the Bank of England's (BoE) monetary policy. The BoE's decision to raise interest rates and the expectation of further rate hikes have made the British Pound an attractive investment for carry traders, who benefit from the interest rate differential between the GBP and other currencies [1].

The CFTC's COT report underscores the importance of understanding market sentiment in making informed investment decisions. The net long position in British Pound futures indicates a strong bullish bias among traders, suggesting that the GBP/USD exchange rate could continue to rise in the near term. However, investors should remain cautious and monitor the economic data and policy developments that could impact the British Pound's value.

References:
[1] https://www.investing.com/currencies/gbp-chf
[2] https://www.tradingview.com/news/te_news:464025:0-british-pound-hits-4-week-low/

Ask Aime: What's driving the GBP's recent strength?