2025.12.22 2026.01.02 How to Read and Use the COT Report in Forex Trading Alex Rodionovhttps://www.litefinance.org/blog/authors/alex-rodionov/ Commitments of Traders (COT) reports are published weekly by the Commodity Futures Trading Commission (CFTC). Although these reports contain data on the futures market, insights gained from them can be applied to the spot market. Thanks to its relative ease of interpretation and analysis,…

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Euro area manufacturing activity slumped in December with the headline reading being a 9-month low amid a fresh decline in output. Demand conditions are showing renewed weakness with new orders falling at the quickest pace in almost a year. Overall business optimism is still being retained with the contraction here being a relatively mild one at least. We’ll have…

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USD/CAD posts little losses, trading around 1.3700 during the European hours on Friday. The technical analysis of the daily chart shows an upside breakout above a bullish descending wedge pattern. The 14-day Relative Strength Index (RSI) at 35.12, below the midline, reflects weak momentum after an uptick from sub-30 readings. The USD/CAD pair remains below the 50-day Exponential Moving…

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Prior +0.3% House prices +0.6% vs +1.2% y/y expected Prior +1.8% It’s a soft end to the year with the average house price ending at £271,068 for December. But overall, UK housing market activity has remained resilient all through 2025. One has to remember that household and consumer sentiment in the UK has been relatively subdued for much of…

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The EUR/USD pair trades in positive territory around 1.1755 during the early European trading hours on Friday. The European Central Bank (ECB) kept rates unchanged at its December policy meeting, and its outlook suggested less urgency for further cuts, which has provided some support to the Euro (EUR) against the US Dollar (USD).  ECB President Christine Lagarde emphasized a…

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Summary: Asia-Pacific trade was thin but directional as markets remained in holiday mode ahead of a full return on January 5. The U.S. dollar weakened, while precious metals surged sharply, led by gold and silver. Gold broke above US$4,370, with silver, platinum and palladium all posting strong gains. Australian manufacturing remained in expansion, while South Korea’s factory sector returned…

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West Texas Intermediate (WTI) Oil price holds ground after registering modest losses in the previous trading session, hovering near $57.50 during the Asian hours on Friday. Traders are awaiting Sunday’s virtual meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+), with expectations that the group will uphold its November decision to pause further production increases….

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Summary: The U.S. Commerce Department has sharply reduced proposed antidumping duties on Italian pasta imports, stepping back from levels that risked forcing producers out of the U.S. market. Initial duties of up to 92% were revised down to 2.3% for La Molisana and 13.9% for Garofalo, with most other producers facing a 9.1% tariff. Italian pasta exporters remain subject…

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The GBP/USD pair gathers strength to around 1.3480 during the early Asian session on Friday. Expectations of the US Federal Reserve (Fed) rate cuts this year weigh on the US Dollar (USD) against the Pound Sterling (GBP). Philadelphia Fed President Anna Paulson is set to speak later on the weekend.  The Greenback ended 2025 with the sharpest annual decline…

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Summary: Bank of Korea Governor Rhee Chang-yong said the central bank will review its forward guidance framework on the future path of interest rates. Rhee warned that excessive won weakness could harm domestic businesses and add to inflation pressures. He said USD/KRW levels above 1,400 appear disconnected from Korea’s economic fundamentals. The BOK will not support U.S.-bound investment decisions…

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