Speculative sentiment toward the Canadian dollar has turned notably less negative, with the latest CFTC data showing a sharp reduction in net short positions. According to figures updated on 30 January 2026, CAD speculative net positions improved to -16.0K, compared with a previous reading of -41.8K.
The move suggests that traders have been closing out bearish bets against the Canadian currency, significantly narrowing the net short over the latest reporting period. While positioning remains in negative territory, the shift toward fewer net shorts may indicate growing confidence in the loonie’s outlook or a reassessment of downside risks relative to other major currencies.
Market participants will be watching upcoming economic data and policy signals closely to gauge whether this easing in bearish positioning marks the start of a more sustained rebalancing in sentiment toward the Canadian dollar.
