The latest Commitment of Traders report, published by ICE on Wednesday and covering the week ended September 18, showed that investment funds increased their net-long position—the difference between long and short positions—by around 7% week on week.

According to market data, the net-long position increased by 2.3 million allowances to around 33.7 million, recovering somewhat from the decline recorded in the previous week, although overall positioning remains relatively subdued compared with recent months.

The increase in the net-long position was driven by movements on both sides of the market. Speculative traders added 1.5 million allowances to their long positions, bringing the total to around 58 million allowances, while simultaneously reducing their short positions by 0.8 million allowances.

Fund positioning is generally viewed as a snapshot of market sentiment and traders’ expectations for prices. A net-long position, where long positions exceed short positions, typically signals a bullish bias, suggesting that speculative investors expect prices to rise. Conversely, a net-short position tends to reflect a bearish outlook, with traders positioning for lower prices. Changes in these positions can therefore provide an indication of how investor sentiment is evolving over time.

Investor positioning and EUA prices typically move in tandem, as was also the case last week, with EUAs gaining 1.6% while funds increased their net-long exposure by around 7%. Nevertheless, the latest increase appears relatively tentative against the broader decline in speculative positioning seen over the past month.

According to BBVA analysts, fund positioning “suggests an increasingly divided market, with investors taking opposing views rather than establishing a clear directional consensus.” This suggests that, despite the renewed increase in net-long exposure, speculative positioning does not yet point to a decisive return of bullish conviction across the market.