From Peter L. Brandt:

I have posted extensively about the January Effect in the forex markets in recent weeks. See recent posts -

January 8 - explanation of January Effect
January 26 - update on January Effect
January 30 - discussion of the CFTC COT data in EUR-USD futures

The January 30 post was written by guest editor, Steve Briese, probably the preeminent expert on COT data.

There has been much discussion lately on the profile of the open interest in futures, whereby commercials have an all-time record-long position and large specs have an all-time record-short position. This profile has been interpreted by some traders as a bullish factor in the forex cross. Steve explains that the COT data do not alter the dominant bear trend in the euro FX.

It now appears possible that the January 27 high in $EURUSD at 1.3234 will be...

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