CFTC Commitments of Traders – Bets on Crude Oil Trimmed on Both Sides. Yet, Net Length Soared
According to the CFTC Commitments of Traders report for the week ended July 21, NET LENGTH for crude oil futures rise +9 125 contracts to 548 876 for the week. Bets on both sides increased. Speculative short position plunged -13 473 contracts, more than offsetting the -13 473 decline...
Dollar Tumbles Further as Gold Hits Record, Coronavirus Weighs on Sentiments
Gold's up trend accelerates further and finally makes new record high today. That comes in a time when there are increasing evidence of second wave of coronavirus infections globally. Also, US-China relations deteriorate to a new low for decades. Dollar is extending recent selloff and is trading and the...
CFTC Commitments of Traders – Trader Increased Long Bets, Sending Euro to Almost 2-Year High
As suggested in the CFTC Commitments of Traders report in the week ended July 21, NET SHORT for USD Index futures gained +754 to 5 793 contracts. Speculative long positions increased +6 856 contracts and short positions added +7 610 contracts. Concerning European currencies, NET LENGTH in EUR futures...
Euro Started Medium Term Up Trend With Break of Key Resistance Against Dollar
Euro ended as the strongest one last week as boosted by the agreement on the Next Generation EU recovery fund. It's seen as a landmark deal which would increase cohesion of the EU. The burden on ECB would also be dramatically eased with the fiscal support. Meanwhile, Eurozone PMI...
European Majors Supported By Strong PMIs, Risk Aversion Continues
Yen and Swiss Franc are trading as the strongest ones for today as stock markets are weighed down by escalating US-China tensions. Though, negative sentiments in Europe was partly offset by much stronger than expected Eurozone and UK PMIs. Signs of a V recovery are there even though the...
Risk-Off on Double Dip Worries and Intensifying US-China Tensions
The financial markets are generally in risk-off mode in Asia, following the selloff in US overnight. Worries over a double dip recession increased after initial jobless claims unexpectedly rose for the first time in nearly four months. Selloff was most serious in NASDAQ,, which closed down -2.29% just after...
Markets Shrug Rebounding Jobless Claims, Sterling Lower on Brexit Stalemate
Sterling tumbles broadly today as another round of Brexit negotiations ended without making any significant progress. Though, Aussie is even weaker as traders are finally taking profits on this week's strong rally. Swiss Franc, on the other hand, rebound strongly, particular against Euro as the lift from EU recovery...
Dollar and Yen Weak after Steep Selloff, No Bottoming in Sight Yet
Investors in Asia remain generally cautious today as reflected in the mixed markets. US-China tensions look set to escalate further after President Donald Trump said closure of other Chinese missions is "always possible". Yet, the developments give no special support to Dollar and Yen. Both remain the weakest for...
US Crude Oil Inventory Surprisingly Increased, Cushing Stockpile Rose for Three Weeks in a Row
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks soared +8.82 mmb to 1461.16 mmb in the week ended July 17. Crude oil inventory gained +4.89 mmb (consensus: -2.09 mmb) to 536.58 mmb. Stockpile increased in 3 out...
Yen Selloff Accelerates Even Though Risk Sentiments Turned Mixed
Risk markets turned mixed today as investors appear to be turning from optimism to cautiousness. Hong Kong stock suffered steep losses on escalating US-China tension. The selloff somewhat carries forward to European markets. Yet, US markets open with slight gains. In the currency markets, Euro is leading the way...
Silver Price to Go High on Economic Recovery amidst High Uncertainty
Silver price’s rally has accelerated over the past weeks. Currently trading at US$ 22.65/oz, price has jumped +27% ytd. Yet, much of the gains (22% out of 27%) was made in the first three weeks of July. With its dual properties, as both industrial and precious metals, silver will...
Dollar Stays Pressured as Gold Targets 1920 Record High
There is no apparent slow down in rally in commodity currencies against Dollar, even though risk markets turned mixed in Asian session. Australian Dollar continues to lead the way higher. Canadian Dollar is also firm as WTI oil price breach 42 handle. On the other hand, Dollar, Yen, and...
Strong Risk Rally on EU Recovery Fund, Aussie Accelerates
Global stock markets are lifted by the agreement on the EUR 750B Next Generation EU recovery package. Commodity currencies surge broadly with Australian Dollar leading the way. RBA Governor indicated that the current exchange rate is inline with Australia's fundamentals. On the other hand, Dollar, Yen and Swiss Franc...
Aussie Surges as RBA Said No to Intervention, Euro Softens on Profit Taking
Euro weakens somewhat today after EU finally reached an agreement on the recovery fund. Traders seem to be taking some profits as expectations become news. Though, New Zealand Dollar is even weaker, partly thanks to cross selling, especially against Aussie. Canadian and Aussie are the strongest ones on risk-on...
RBA Minutes: Risks to Recovery Skewed to Downside as July Meeting Had No Discussion about Impacts of Melbourne’s Lockdown
The minutes for RBA’s July meeting affirmed that policymakers should leave the current monetary measures steady for a prolonged period of time. Policymakers at the July meeting did not discuss about the surge in new coronavirus cases in Melbourne and potential economic impacts of the renewed lockdown measures. We...
PBOC Left Policy Rate Unchanged for Three Months, Affirming Targeted Monetary Easing Stance
PBOC has left the policy rate, the 1-year loan prime rate, at 3.85% in July. The 5-year loan prime rate also stays at 4.65%. The decision has been widely anticipated, as the medium lending facility (MLF) rate, the guidance rate for the LPR, was also kept unchanged at 2.95%...
Sterling Jumps as Euro Bulls Lose Patience on EU Recovery Fund
While Euro rises initially today it's starting to be overwhelmed by Sterling and Swiss Franc entering into US session. Words from officials regarding the talks of EU recovery fund were positive. European Commission President Ursula von der Leyen said the leaders showed "clear will to find a solution" and...
Euro Surges Again on Recovery Fund Progress, Yen Down on Poor Exports
Euro's rally continues today as, despite some jitters, it appears that EU would agree on a compromised deal of recovery fund. It's reported that after marathon negotiations, the Netherlands, Austria, Denmark and Sweden are satisfied with EUR 390B fund being made available as grants with the rest coming as low-interest...
Euro’s Rally to be Tested by Outcome of EU Summit on Recovery Fund
Euro ended last week as the strongest one, as pushed up by hope of an agreement over EU's post-pandemic recovery fund. The strength was particularly apparent against Swiss Franc and Sterling. Yet, up till the time of writing, there seems to be no consensus reached at the EU summit...
CFTC Commitments of Traders – USD Weakened against Major Currencies as Market Focused on Global Recovery
As suggested in the CFTC Commitments of Traders report in the week ended July 14, NET SHORT for USD Index futures added +100 to 5 039 contracts. Speculative long positions slipped -13 contracts and short positions gained +87 contracts. Concerning European currencies, NET LENGTH in EUR futures soared +7...