About This Video
An in-depth view of currency market sentiment as it relates to options markets and publicly-available CFTC Commitment of Traders data. The CFTC publishes a weekly report on positioning in futures markets, giving clear and reliable information on market sentiment. Data is only available once per week and works on a four-day delay, making it less useful as a market timing tool. We use FX Options Risk Reversals data to fill in the gaps. Historical relationships show that risk reversals track non-commercial positioning as measured by the COT. Thus we are able to track positioning data as provided by the COT, comparing it to sentiment in forex options markets.