Dollar bearish bet increase accelerated despite positive US data | IFCM

Dollar bearish bet increase accelerated despite positive US data

22/6/2020

US dollar net short bets jumped to $15.69 billion from $9.51 billion against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to June 16 and released on Friday June 19. The change in overall dollar net position resulted due to steep decreases in bearish bets on Australian dollar and British Pound, as well as increase in bullish bets on Japanese yen. And a significant decrease in bullish bets on euro didn’t offset the increase in dollar bearish bets. The Pound, Canadian and Australian dollars maintained net short positions against the dollar. The bearish dollar bets increase accelerated as Federal Reserve projected the US economy would shrink 6.5% in 2020 while Powell said the economic recovery will be “a long road” as the central bank left interest rates unchanged. Positive data like US producer prices’ first increase in four months in May and another decline in initial jobless claims weren’t sufficient to offset bearish impact of Fed’s projections and the announcement it would expand the scope of its $750 billion emergency corporate debt loan program to include individual corporate bonds.


CFTC Sentiment vs Exchange Rate

June 16 2020BiasEx RateTrendPosition $ mlnWeekly Change
CADbearishnegative-1882-31
AUDbearishnegative-4492094
EURbullishnegative164872933
GBPbearishnegative-1256656
CHFbullishpositive211-21
JPYbullishpositive2575549
  Total15686 

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

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