What is the CFTC?

The Commodity Futures Trading Commission is an independent agency of the US government that regulates derivatives markets, including futures, swaps, and certain kinds of options. The Commission’s goal is to “promote the integrity, resilience, and vibrancy of the US derivatives markets through sound regulation,” and be “the global standard for sound derivatives regulation.” Each Friday, the CFTC releases a weekly report used as a sentiment indicator for currency pairs, as it breaks down long and short open positions. Extreme readings are usually understood as a sign of possible exhaustion and a soon-to-come reversal in the dominant trend.