Dollar bearish bets slid after Fed policy shift announcement

September 7, 2020

By IFCMarkets.com

US dollar net short bets increase halted with total net shorts declining to $32.84 billion from $33.69 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 September 1 and released on Friday September 4. The decline in net short dollar bets was the result of mainly decline in bearish bets on Canadian dollar and decrease in bullish bets on euro after the GfK report its consumer climate index for euro-zone was weaker than expected. Dollar bearish bets slipped as the Federal Reserve announced a shift in policy framework. Policy makers would no longer pre-emptively hike interest rates to keep inflation just below 2%. And the Labor Department data showed that continuing claims fell slightly to 14.5 million while 1.01 million Americans filed for first-time benefits during the previous week. At the same time US orders for durable goods rose 11.2% in July, helped by a 22% surge in automobile demand.

CFTC Sentiment vs Exchange Rate

September 01 2020 Bias Ex RateTrend Position $ mln Weekly Change
CAD bearish negative -2067 159
AUD bearish negative -12 268
EUR bullish negative 29303 -2022
GBP bullish negative 528 68
CHF bullish negative 1595 -40
JPY bullish negative 3493 718
Total 32839

 

 


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Market Analysis provided by IFCMarkets.com
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