CFTC Commitments of Traders – NET SHORT in USD Index Futures could Trim Next Week on Strong Rebound in Greenback
As suggested in the CFTC Commitments of Traders report in the week ended September 22, NET SHORT for USD Index futures increased -906 to 9 146 contracts. Speculative long positions dropped -1 424 contracts and short positions slipped -518 contracts. NET SHORT will likely shrink in the coming week...
CFTC Commitments of Traders – Gold’s NET LENGTH Shrank amidst Worst Price Decline since March
Losing more than -4%, the Comex Gold futures marked its worst week since March amidst US dollar's rebound. The yellow metal's outlook remains bearish in the near-term after the downward breakout after consolation. We expect NET LENGTH to shrink further in the coming week. Crude oil futures recorded increase...
Dollar Firms Up Again ahead of Weekly Close
Dollar firms up again entering into US session, but it's so far held below yesterday's high against all but Swiss Franc. There is little reaction to weaker than expected growth in durable goods orders. New Zealand Dollar is surprisingly the strongest on for today, while Yen is the third....
Dollar Retreats as Risk Aversion Recedes, Focus Turns to Yen
Dollar and Yen retreat mildly today risk aversion recedes slightly. But as Asian markets struggle to find momentum for a rebound, risk aversion could come back any time before weekly close. As for the week, the greenback remains the strongest one, followed by Yen. Australian Dollar is the worst...
Dollar Rally Continues, Sterling Resilient, Franc Shrugs SNB
Dollar remains the strongest one for the week, followed by Yen, as risk aversion continue to dominate. The recovery attempts in European stocks appeared to have faded very quickly while DOW futures point another day of lower open. Sterling is relatively resilient, with some support from the new jobs...
SNB Expects Deflation to Stay Until 2Q21. Pledged to Intervene Exchange Rate as CHF Remains Highly Valued
As widely anticipated, SNB left the policy rate unchanged at -0.75%. It reiterated the view that Swiss franc remained “highly valued” and the commitment to intervene in the FX market. The central bank will publish data on money and foreign exchange market operations on a quarterly basis, compared with...
Dollar Powers Up as Risk Aversion Intensifies on Coronavirus Resurgence
Risk aversion continues to dominate the markets, on concern of another wave of coronavirus infects, as the Northern Hemisphere is entering in fall and winter. US stocks closed notably lower after brief initial rebound. Asian markets follow with heavy selling, with major indices in deep red. In the currency...
US Crude Oil and Petroleum Product Inventories Fell Across the Board
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks dived -7.48 mmb to 1421.68 mmb in the week ended September 18. Crude oil inventory dropped -1.64 mmb (consensus: +2.33 mmb) to 494.41 mmb. Stockpile decreased in 3 out...
Dollar Stays Strong But Yen Retreats With Rebound in Stock Markets
Dollar remains the strongest one for today but Swiss Franc and Sterling have overtaken as the next strongest. Sterling is some what helped by solid PMIs but Euro shrugged off the disappointing PMI readings. European stock markets are having a solid rebound today while US equities might further pare...
RBNZ Hints to Add Alternative Easing in Coming Months
As widely anticipated, RBNZ left the OCR unchanged at 0.25% today. The cap of Large Scale Asset Purchase (LSAP) program, a.k.a. QE, also stays at NZD 100B. Meanwhile, the central bank reiterated the forward guidance that the OCR will be “held at 0.25% in accordance with the guidance issued...
Aussie and Kiwi Down on Easing Expectations, Dollar and Yen Firm
Commodity currencies tumble generally in Asian session today. New Zealand Dollar softens as RBNZ further affirm that it's in progress for more monetary easing, including negative interest rates. Aussie also tumble on increasing expectation of on imminent RBA rate cut in October. On the other hand, while US stocks...
SNB Preview : FX Intervention the Key Monetary Policy Tool to Curb CHF’s Strength
We expect SNB to leave the policy rate unchanged at -0.75%. While it does not rule out the possibility of further rate cut, the central bank's main tool is FX intervention to curb excessive strength in Swiss franc. Economic contraction in 2Q20 turned out to be less severe than...
Dollar Awaits Fuel for Committed Rally, Stocks Consolidate Losses
The overall markets are relatively steady today. Dollar attempted for a brief rally in early European session. But it quickly retreated together with mild recovery in stocks. Though, there seems to be no committed buying in the equities market yet, while US futures also point to lower open, risk...
Markets Stabilized after Selloff, Dollar Rally Still Unconvincing
Asian markets are trading mildly lower today, following the weakness in US overnight. While DOW dropped more than -900 pts during the session, it managed to pare back half of the losses to close down -509.72 pts only. Following that, Dollar and Yen retreated some gains while Gold also...
Stocks and Gold Tumble on Fear of Return to Lockdown, Dollar and Yen Jump
Risk aversion builds up momentum in European session and carries forward to the US, with DOW opening down more than -400 pts. New Zealand and Australian Dollars are trading broadly lower, while Sterling is also among the weakest on fear of return to coronavirus lockdown. On the other hand,...
Dollar Softens in Quiet Markets, RBNZ and SNB to Meet This Week
The markets are rather quiet in Asian session with Japan on holiday. Some selloff is seen in Hong Kong stocks but others simply ignored. The forex markets are generally stuck inside Friday's range, with Dollar and Swiss Franc trading with a soft tone. On the other hand, Aussie and...
RBNZ Preview – Waiting for More Hints on Negative Rate
After a big move in August, the RBNZ will likely leave the OCR unchanged at 0.25% and the cap of Large Scale Asset Purchase (LSAP) unchanged at NZD 100B. It is, however, expected to offer more indication on the alternative policy tools to be implemented. While we expect the...
CFTC Commitments of Traders – NET SHORT of USD Index Futures Increased as Greenback’s Rebound Not Promising
As suggested in the CFTC Commitments of Traders report in the week ended September 15, NET SHORT for USD Index futures increased +2 482 to 8 240 contracts. Speculative long positions slipped -97 contracts and short positions gained +2 385 contracts. Concerning European currencies, NET LENGTH in EUR futures...
CFTC Commitments of Traders – Bets Increased in Both Side as Crude Oil Price Lacks Direction
According to the CFTC Commitments of Traders report for the week ended September 15, NET LENGTH for crude oil futures added +378 contracts to 449 744 for the week. Speculative long position rose +11 868 contracts, while shorts also gained +11 490 contracts. For refined oil products, NET LENGTH...
Yen Surged Again, Dollar Rally Failed, Sterling Pared Losses
Yen ended up broadly as the strongest one last week, extending this month's rebound. Domestically, political uncertainty was cleared with Yoshihide Suga took up the job of Prime Minister, ensuring continuity of Abenomics. Externally, geopolitical risks at the South China Sea and Taiwan Strait heightened while US-China relations deteriorated...