Large currency speculators have continued to raise their bullish bets on the Euro, maintaining optimism near multi-month highs. According to the latest Commitment of Traders (COT) report released by the U.S. Commodity Futures Trading Commission (CFTC), non-commercial traders—including hedge funds and other large investors—expanded their net long positions in Euro futures during the week ending April 29, 2025.
The total net long contracts rose to 75,797, marking a weekly increase of 10,769 contracts. This sustained rise highlights growing investor confidence in the Eurozone currency, keeping net long positions near their highest levels since September 2024.
Hedge Funds Signal Strong Euro Sentiment
Non-commercial traders, who typically engage in futures markets for speculative purposes rather than hedging, are seen as a barometer of broader market sentiment. The steady increase in Euro net longs suggests that these investors anticipate further strength in the Euro in the near term.
This bullish stance may be influenced by expectations surrounding monetary policy adjustments, improving Eurozone economic indicators, or a weakening U.S. dollar environment. While the report does not specify the motivations behind the trades, the magnitude of the shift points to a clear shift in favor of the Euro by professional money managers.
Euro Positions Approach 2024 Peak Levels
The current level of speculative Euro long positions is one of the strongest seen since late 2024, reflecting a robust turnaround from earlier periods of uncertainty. Back in September 2024, Euro net long contracts peaked before entering a temporary decline. The latest surge indicates renewed confidence and potential upside momentum for the currency.
As global economic conditions evolve and central banks navigate the balance between inflation control and economic growth, currency markets are likely to remain volatile. However, the recent commitment by Large currency speculator to increase their exposure to the Euro suggests a belief that the currency may benefit from current market dynamics in the weeks ahead.
The next COT report is expected to provide further insight into whether this bullish sentiment continues to strengthen or begins to reverse.
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