Commodity Futures Trading Commission (CFTC) Commitments of Traders data plotted onto a chart. This chart includes large open positions (long and short) of institutional traders in the futures market. The data is collected by CFTC each Tuesday, but is published each Friday at 2:30 PM EST, so there is a certain lag.
How to use CFTC data in forex trading
Large positions that fall into CFTC data reporting requirements usually need some time to build and square. Despite a lag, this data is still valuable as an indicator of sentiment. Extremes and flips in positioning can indicate change of a trend and a growing number of contracts can suggest strength of a trend.
Please note that USD is considered a counter currency in the case of all pairs, so when looking at the chart, you look at EUR/USD, GBP/USD, JPY/USD, CHF/USD, AUD/USD, NZD/USD, and CAD/USD, and you need to flip the data in some cases.