Dollar sentiment deteriorates ahead of Fed meeting | IFCM UAE
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Dollar sentiment deteriorates ahead of Fed meeting

25/9/2017

US dollar bearish bets rose to $13.19 billion from $11.57 against the major currencies during the previous week, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to September 19 released on Friday September 22. Economic data were mixed during the week ahead of Federal Reserve’s two-day meeting.

Positive economic data included US producer price index’s 0.2% gain in August after 0.1% decline in July, and 0.4% rise in consumer prices in August instead of an expected 0.3% gain. On negative side US retail sales slipped 0.2% on month in August from downwardly revised 0.3% increase in July and industrial production fell 0.9% on month in August which can be explained by stoppages due to hurricanes. Investors built net short dollar position ahead of Federal Reserve’s interest rate decision. As is evident from the Sentiment table, sentiment improved for major currencies except for euro and Swiss franc. And the euro, Canadian and Australian dollars remain the three major currencies held net long against the US dollar.

The euro bullish sentiment weakened considerably despite a 0.1% increase on month in industrial production in July following a 0.6% drop in June and increase in headline inflation to 1.5% in August from 1.3% in July. The net long euro position fell $3.46bn to $9.41bn. Investors cut the gross longs and built shorts by 1077 and 22228 contracts respectively. The British Pound sentiment improved dramatically as the Bank of England warned UK interest rates could rise faster than traders currently are pricing in while the policy was kept unchanged. The net short position in British Pound narrowed $2.97bn to $0.86bn as investors built the gross longs and cut shorts by 7618 and 28306 contracts respectively. The bearish Japanese yen sentiment moderated marginally despite 0.8% decline on month in industrial production in July after 2.2% increase in June. The net short position in yen narrowed $0.75bn to $5.75bn. Investors built the gross longs and covered shorts by 1793 and 4182 contracts respectively.


CFTC Sentiment vs Exchange Rate

September 19 2017BiasEx RateTrendPosition $ mlnWeekly Change
CADbullishnegative4789642
AUDbullishnegative5805753
EURbullishnegative9408-3461
GBPbearishneutral-8582969
CHFbearishnegative-204-33
JPYbearishnegative-5750752
  Total13191 

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.


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