Archive for Forex and Currency News – Page 61

02 Oct

The Euro/Dollar exchange rate remains near its lowest levels

By RoboForex Analytical Department

The main currency pair starts the week and the month by consolidating around the 1.0569 mark.

The US Federal Reserve’s intention to potentially raise interest rates once again in 2023 is strengthening the position of the USD. The 10-year treasury bonds yield in the US remains at long-term highs regardless of a minor correction.

This week, statistics will be abundant in both the US and the eurozone. Employment sector reports for September in the US are expected to show stabilisation without any notable catalysts.

The eurozone will report on retail sales in August, the PPI, and business activity in the services sector. All these reports will provide insight into the state of the economic system. It is not certain whether there will be any catalyst among the European statistics to support the EUR, although this possibility exists.

Technical analysis of EUR/USD currency pair:

On the EURUSD H4 chart, a consolidation range has formed around 1.0700, reaching the local target of a declining wave at 1.0500 upon escaping the range downwards. Today the market has corrected to 1.0615. A new link of correction to 1.0620 is not excluded, followed by a decline to 1.0440. After reaching this level, a correction to 1.0700 could follow (with a test from below). Next, a decline to 1.0140 is expected. Technically, this scenario is confirmed by the MACD, whose signal line is below zero. The indicator is expected to set new lows.

On the EURUSD H1 chart, a movement in a declining wave to 1.0440 is forming. By now, the market has completed a consolidation range of around 1.0586, reaching the local target of a declining wave at 1.0500 with an escape from the range downwards. A link of correction to 1.0615 has formed today. A new price hike to 1.0620 is not excluded. Next, a new declining movement to 1.0440 is expected, followed by a rise to 1.0700. Technically, this scenario is confirmed by the Stochastic oscillator, whose signal line has rebounded from the 80 mark and is currently pointing sharply downwards. The line might eventually fall to the 20 mark.

Disclaimer

Any predictions contained herein are based on the author’s particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

Financial News Forex and Currency News
30 Sep

Speculators boost US Dollar Index bullish bets for 4th straight week to 38-week high

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday September 26th and shows a quick view of how large market participants (for-profit speculators and commercial traders) were positioned in the futures markets. All currency positions are in direct relation to the US dollar where, for example, a bet for the euro is a bet that the euro will rise versus the dollar while a bet against the euro will be a bet that the euro will decline versus the dollar.

Weekly Speculator Changes led by New Zealand Dollar & Brazilian Real

The COT currency market speculator bets were higher this week as six out of the eleven currency markets we cover had higher positioning while the other five markets had lower speculator contracts.

Leading the gains for the currency markets was the Canadian Dollar (15,331 contracts) with the Australian Dollar (10,131 contracts), the New Zealand Dollar (6,091 contracts), the Brazilian Real (2,705 contracts), the US Dollar Index (1,124 contracts) and Bitcoin (197 contracts) also showing positive weeks.

The currencies seeing declines in speculator bets on the week were the British Pound (-18,014 contracts), the Japanese Yen (-7,893 contracts), the EuroFX (-3,582 contracts), the Swiss Franc (-1,180 contracts) and the Mexican Peso (-3,017 contracts) also registering lower bets on the week.

US Dollar Index Bullish Bets rise for 4th straight week to 38-week high

Highlighting the COT currency’s data this week is the rise of the speculator’s positioning in the US Dollar Index.

The large speculative US Dollar Index positions rose for a fourth straight week this week with the speculator position gaining by a total of +13,935 contracts over this last four-week span.

This renewed bullishness has brought the US Dollar Index speculator net position (currently at a total of +16,758 contracts) to a new 38-week high, dating back to January 3rd of this year when the speculator’s net position was at a total of +17,761 contracts.

The average weekly speculator position over 2023 has been a modest +11,409 contracts thus far. This follows a strong 2022 where the weekly average speculator position was +33,606 contracts.

The US Dollar Index price also soared over the course of 2022 and hit multi-decade highs with a top at 114.75 price level before retreating into the end of 2022. The Dollar Index has had an topsy-turvy 2023 with an early peak over 105 but then a lower valley that saw a decline to under the 100.00 price level in July. Since then, the Dollar Index has been on a strong run and is currently on a streak of gains for eleven consecutive weeks and closed this week back above the 105.00 level.

Data Snapshot of Forex Market Traders | Columns Legend
Sep-26-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
USD Index42,3734116,75853-18,636461,87829
EUR699,2713798,39962-124,4074326,00820
GBP227,8435415,66967-8,68741-6,98244
JPY285,974100-109,5125120,22794-10,71532
CHF53,90084-9,1153220,91477-11,79919
CAD175,84845-32,6962429,819762,87729
AUD211,88267-86,8159102,25094-15,43515
NZD50,75758-15,1811618,42187-3,24011
MXN216,9064360,63376-64,635234,00237
RUB20,93047,54331-7,15069-39324
BRL55,5884715,55856-18,138422,58058
Bitcoin14,844681,79493-2,033023918

 

Strength Scores led by Bitcoin & Mexican Peso

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Bitcoin (93 percent) and the Mexican Peso (76 percent) led the currency markets this week. The British Pound (67 percent), EuroFX (62 percent) and the Brazilian Real (56 percent) came in as the next highest in the weekly strength scores.

On the downside, the Japanese Yen (5 percent), the Australian Dollar (9 percent) and the New Zealand Dollar (16 percent) were at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
US Dollar Index (52.9 percent) vs US Dollar Index previous week (51.0 percent)
EuroFX (62.2 percent) vs EuroFX previous week (63.7 percent)
British Pound Sterling (66.6 percent) vs British Pound Sterling previous week (79.1 percent)
Japanese Yen (5.0 percent) vs Japanese Yen previous week (9.7 percent)
Swiss Franc (31.6 percent) vs Swiss Franc previous week (34.8 percent)
Canadian Dollar (24.1 percent) vs Canadian Dollar previous week (9.8 percent)
Australian Dollar (9.3 percent) vs Australian Dollar previous week (0.0 percent)
New Zealand Dollar (15.9 percent) vs New Zealand Dollar previous week (0.0 percent)
Mexican Peso (76.1 percent) vs Mexican Peso previous week (78.0 percent)
Brazilian Real (55.6 percent) vs Brazilian Real previous week (52.1 percent)
Bitcoin (93.4 percent) vs Bitcoin previous week (90.4 percent)

 

Bitcoin & US Dollar Index top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that the Bitcoin (38 percent) and the US Dollar Index (20 percent) lead the past six weeks trends for the currencies and were the only currencies in positive trends.

The New Zealand Dollar (-33 percent) leads the downside trend scores currently with the Australian Dollar (-31 percent), EuroFX (-26 percent) and the British Pound (-25 percent) following next with lower trend scores.

Strength Trend Statistics:
US Dollar Index (19.6 percent) vs US Dollar Index previous week (21.7 percent)
EuroFX (-26.2 percent) vs EuroFX previous week (-20.4 percent)
British Pound Sterling (-24.5 percent) vs British Pound Sterling previous week (-9.3 percent)
Japanese Yen (-17.0 percent) vs Japanese Yen previous week (-10.9 percent)
Swiss Franc (-14.0 percent) vs Swiss Franc previous week (-6.8 percent)
Canadian Dollar (-19.8 percent) vs Canadian Dollar previous week (-44.2 percent)
Australian Dollar (-30.6 percent) vs Australian Dollar previous week (-49.2 percent)
New Zealand Dollar (-33.2 percent) vs New Zealand Dollar previous week (-54.4 percent)
Mexican Peso (-13.1 percent) vs Mexican Peso previous week (-12.2 percent)
Brazilian Real (-10.1 percent) vs Brazilian Real previous week (-19.3 percent)
Bitcoin (37.7 percent) vs Bitcoin previous week (41.3 percent)

Individual COT Forex Markets:

US Dollar Index Futures:

US Dollar Index Forex Futures COT ChartThe US Dollar Index large speculator standing this week resulted in a net position of 16,758 contracts in the data reported through Tuesday. This was a weekly increase of 1,124 contracts from the previous week which had a total of 15,634 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 52.9 percent. The commercials are Bearish with a score of 46.2 percent and the small traders (not shown in chart) are Bearish with a score of 28.5 percent.

Price Trend-Following Model: Strong Uptrend

Our weekly trend-following model classifies the current market price position as: Strong Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

US DOLLAR INDEX StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:62.822.511.5
– Percent of Open Interest Shorts:23.266.57.1
– Net Position:16,758-18,6361,878
– Gross Longs:26,6069,5454,877
– Gross Shorts:9,84828,1812,999
– Long to Short Ratio:2.7 to 10.3 to 11.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):52.946.228.5
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:19.6-20.010.2

 

Euro Currency Futures:

Euro Currency Futures COT ChartThe Euro Currency large speculator standing this week resulted in a net position of 98,399 contracts in the data reported through Tuesday. This was a weekly reduction of -3,582 contracts from the previous week which had a total of 101,981 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 62.2 percent. The commercials are Bearish with a score of 42.6 percent and the small traders (not shown in chart) are Bearish with a score of 20.5 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

EURO Currency StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:30.255.311.8
– Percent of Open Interest Shorts:16.273.18.0
– Net Position:98,399-124,40726,008
– Gross Longs:211,516387,03082,167
– Gross Shorts:113,117511,43756,159
– Long to Short Ratio:1.9 to 10.8 to 11.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):62.242.620.5
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-26.230.3-31.0

 

British Pound Sterling Futures:

British Pound Sterling Futures COT ChartThe British Pound Sterling large speculator standing this week resulted in a net position of 15,669 contracts in the data reported through Tuesday. This was a weekly lowering of -18,014 contracts from the previous week which had a total of 33,683 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 66.6 percent. The commercials are Bearish with a score of 40.8 percent and the small traders (not shown in chart) are Bearish with a score of 44.3 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BRITISH POUND StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:37.248.011.6
– Percent of Open Interest Shorts:30.351.814.6
– Net Position:15,669-8,687-6,982
– Gross Longs:84,750109,26426,381
– Gross Shorts:69,081117,95133,363
– Long to Short Ratio:1.2 to 10.9 to 10.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):66.640.844.3
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-24.528.8-31.7

 

Japanese Yen Futures:

Japanese Yen Forex Futures COT ChartThe Japanese Yen large speculator standing this week resulted in a net position of -109,512 contracts in the data reported through Tuesday. This was a weekly decrease of -7,893 contracts from the previous week which had a total of -101,619 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 5.0 percent. The commercials are Bullish-Extreme with a score of 94.3 percent and the small traders (not shown in chart) are Bearish with a score of 31.7 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

JAPANESE YEN StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:16.169.912.3
– Percent of Open Interest Shorts:54.427.916.0
– Net Position:-109,512120,227-10,715
– Gross Longs:46,169200,01535,139
– Gross Shorts:155,68179,78845,854
– Long to Short Ratio:0.3 to 12.5 to 10.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):5.094.331.7
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-17.014.5-2.4

 

Swiss Franc Futures:

Swiss Franc Forex Futures COT ChartThe Swiss Franc large speculator standing this week resulted in a net position of -9,115 contracts in the data reported through Tuesday. This was a weekly decline of -1,180 contracts from the previous week which had a total of -7,935 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 31.6 percent. The commercials are Bullish with a score of 77.4 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 18.7 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

SWISS FRANC StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:23.059.317.7
– Percent of Open Interest Shorts:39.920.539.6
– Net Position:-9,11520,914-11,799
– Gross Longs:12,37731,9689,542
– Gross Shorts:21,49211,05421,341
– Long to Short Ratio:0.6 to 12.9 to 10.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):31.677.418.7
– Strength Index Reading (3 Year Range):BearishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-14.030.3-41.8

 

Canadian Dollar Futures:

Canadian Dollar Forex Futures COT ChartThe Canadian Dollar large speculator standing this week resulted in a net position of -32,696 contracts in the data reported through Tuesday. This was a weekly increase of 15,331 contracts from the previous week which had a total of -48,027 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 24.1 percent. The commercials are Bullish with a score of 76.4 percent and the small traders (not shown in chart) are Bearish with a score of 29.2 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

CANADIAN DOLLAR StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:9.768.719.2
– Percent of Open Interest Shorts:28.351.717.6
– Net Position:-32,69629,8192,877
– Gross Longs:17,006120,75833,799
– Gross Shorts:49,70290,93930,922
– Long to Short Ratio:0.3 to 11.3 to 11.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):24.176.429.2
– Strength Index Reading (3 Year Range):BearishBullishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-19.810.911.6

 

Australian Dollar Futures:

Australian Dollar Forex Futures COT ChartThe Australian Dollar large speculator standing this week resulted in a net position of -86,815 contracts in the data reported through Tuesday. This was a weekly increase of 10,131 contracts from the previous week which had a total of -96,946 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 9.3 percent. The commercials are Bullish-Extreme with a score of 94.1 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 14.8 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

AUSTRALIAN DOLLAR StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:17.071.39.7
– Percent of Open Interest Shorts:58.023.017.0
– Net Position:-86,815102,250-15,435
– Gross Longs:36,104151,04120,512
– Gross Shorts:122,91948,79135,947
– Long to Short Ratio:0.3 to 13.1 to 10.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):9.394.114.8
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-30.627.9-8.7

 

New Zealand Dollar Futures:

New Zealand Dollar Forex Futures COT ChartThe New Zealand Dollar large speculator standing this week resulted in a net position of -15,181 contracts in the data reported through Tuesday. This was a weekly increase of 6,091 contracts from the previous week which had a total of -21,272 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 15.9 percent. The commercials are Bullish-Extreme with a score of 86.6 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 11.4 percent.

Price Trend-Following Model: Downtrend

Our weekly trend-following model classifies the current market price position as: Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

NEW ZEALAND DOLLAR StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:20.972.64.6
– Percent of Open Interest Shorts:50.936.311.0
– Net Position:-15,18118,421-3,240
– Gross Longs:10,63236,8672,340
– Gross Shorts:25,81318,4465,580
– Long to Short Ratio:0.4 to 12.0 to 10.4 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):15.986.611.4
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-33.230.6-8.4

 

Mexican Peso Futures:

Mexican Peso Futures COT ChartThe Mexican Peso large speculator standing this week resulted in a net position of 60,633 contracts in the data reported through Tuesday. This was a weekly lowering of -3,017 contracts from the previous week which had a total of 63,650 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 76.1 percent. The commercials are Bearish with a score of 22.8 percent and the small traders (not shown in chart) are Bearish with a score of 36.7 percent.

Price Trend-Following Model: Weak Uptrend

Our weekly trend-following model classifies the current market price position as: Weak Uptrend. The current action for the model is considered to be: Hold – Maintain Long Position.

MEXICAN PESO StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:42.853.33.0
– Percent of Open Interest Shorts:14.883.11.2
– Net Position:60,633-64,6354,002
– Gross Longs:92,732115,6166,587
– Gross Shorts:32,099180,2512,585
– Long to Short Ratio:2.9 to 10.6 to 12.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):76.122.836.7
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-13.112.25.1

 

Brazilian Real Futures:

Brazil Real Futures COT ChartThe Brazilian Real large speculator standing this week resulted in a net position of 15,558 contracts in the data reported through Tuesday. This was a weekly advance of 2,705 contracts from the previous week which had a total of 12,853 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 55.6 percent. The commercials are Bearish with a score of 42.3 percent and the small traders (not shown in chart) are Bullish with a score of 58.5 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: New Sell – Short Position.

BRAZIL REAL StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:52.737.37.6
– Percent of Open Interest Shorts:24.770.03.0
– Net Position:15,558-18,1382,580
– Gross Longs:29,29820,7464,229
– Gross Shorts:13,74038,8841,649
– Long to Short Ratio:2.1 to 10.5 to 12.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):55.642.358.5
– Strength Index Reading (3 Year Range):BullishBearishBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-10.18.77.8

 

Bitcoin Futures:

Bitcoin Crypto Futures COT ChartThe Bitcoin large speculator standing this week resulted in a net position of 1,794 contracts in the data reported through Tuesday. This was a weekly lift of 197 contracts from the previous week which had a total of 1,597 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 93.4 percent. The commercials are Bearish-Extreme with a score of 13.9 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 18.4 percent.

Price Trend-Following Model: Strong Downtrend

Our weekly trend-following model classifies the current market price position as: Strong Downtrend. The current action for the model is considered to be: Hold – Maintain Short Position.

BITCOIN StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:73.61.08.1
– Percent of Open Interest Shorts:61.514.76.5
– Net Position:1,794-2,033239
– Gross Longs:10,9301421,200
– Gross Shorts:9,1362,175961
– Long to Short Ratio:1.2 to 10.1 to 11.2 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):93.413.918.4
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:37.7-55.7-10.4

 

Article By InvestMacro – Receive our weekly COT Newsletter

See our Weekly Trend Model Readings and Actions for each COT Futures Market and Category. All information contained in this data are for general informational purposes only and do not constitute investment advice.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Forex and Currency News Opinions
30 Sep

Speculator Extremes: Heating Oil, Bitcoin, Corn & Bonds lead Bullish & Bearish Positions

By InvestMacro

The latest update for the weekly Commitment of Traders (COT) report was released by the Commodity Futures Trading Commission (CFTC) on Friday for data ending on September 26th.

This weekly Extreme Positions report highlights the Most Bullish and Most Bearish Positions for the speculator category. Extreme positioning in these markets can foreshadow strong moves in the underlying market.

To signify an extreme position, we use the Strength Index (also known as the COT Index) of each instrument, a common method of measuring COT data. The Strength Index is simply a comparison of current trader positions against the range of positions over the previous 3 years. We use over 80 percent as extremely bullish and under 20 percent as extremely bearish. (Compare Strength Index scores across all markets in the data table or cot leaders table)

Here Are This Week’s Most Bullish Speculator Positions:

Heating Oil


The Heating Oil speculator position comes in as the most bullish extreme standing this week. The Heating Oil speculator level is currently at a 98.6 percent score of its 3-year range.

The six-week trend for the percent strength score totaled 18.4 this week. The overall net speculator position was a total of 42,127 net contracts this week with a change of -774 contract in the weekly speculator bets.

Speculators or Non-Commercials Notes:

Speculators, classified as non-commercial traders by the CFTC, are made up of large commodity funds, hedge funds and other significant for-profit participants. The Specs are generally regarded as trend-followers in their behavior towards price action – net speculator bets and prices tend to go in the same directions. These traders often look to buy when prices are rising and sell when prices are falling. To illustrate this point, many times speculator contracts can be found at their most extremes (bullish or bearish) when prices are also close to their highest or lowest levels.

These extreme levels can be dangerous for the large speculators as the trade is most crowded, there is less trading ammunition still sitting on the sidelines to push the trend further and prices have moved a significant distance. When the trend becomes exhausted, some speculators take profits while others look to also exit positions when prices fail to continue in the same direction. This process usually plays out over many months to years and can ultimately create a reverse effect where prices start to fall and speculators start a process of selling when prices are falling.

Bitcoin


The Bitcoin speculator position comes next in the extreme standings this week. The Bitcoin speculator level is now at a 93.4 percent score of its 3-year range.

The six-week trend for the percent strength score was 37.7 this week. The speculator position registered 1,794 net contracts this week with a weekly change of 197 contracts in speculator bets.

Cocoa Futures


The Cocoa Futures speculator position comes in third this week in the extreme standings. The Cocoa Futures speculator level resides at a 90.1 percent score of its 3-year range.

The six-week trend for the speculator strength score came in at 1.4 this week. The overall speculator position was 78,538 net contracts this week with a change of -9,724 contracts in the weekly speculator bets.

3-Month Secured Overnight Financing Rate


The 3-Month Secured Overnight Financing Rate speculator position comes up number four in the extreme standings this week. The 3-Month Secured Overnight Financing Rate speculator level is at a 89.1 percent score of its 3-year range.

The six-week trend for the speculator strength score totaled a change of 18.8 this week. The overall speculator position was 317,146 net contracts this week with a change of -182,231 contracts in the speculator bets.

Bloomberg Commodity Index


The Bloomberg Commodity Index speculator position rounds out the top five in this week’s bullish extreme standings. The Bloomberg Commodity Index speculator level sits at a 86.2 percent score of its 3-year range. The six-week trend for the speculator strength score was 5.7 this week.

The speculator position was -5,137 net contracts this week with a change of 1,280 contracts in the weekly speculator bets.

This Week’s Most Bearish Speculator Positions:

Corn


The Corn speculator position comes in as the most bearish extreme standing this week. The Corn speculator level is at a 0.0 percent score of its 3-year range.

The six-week trend for the speculator strength score was -13.7 this week. The overall speculator position was -118,540 net contracts this week with a change of -17,307 contracts in the speculator bets.

Ultra 10-Year U.S. T-Note


The Ultra 10-Year U.S. T-Note speculator position comes in next for the most bearish extreme standing on the week. The Ultra 10-Year U.S. T-Note speculator level is at a 4.1 percent score of its 3-year range.

The six-week trend for the speculator strength score was -12.3 this week. The speculator position was -198,126 net contracts this week with a change of -61,389 contracts in the weekly speculator bets.

2-Year Bond


The 2-Year Bond speculator position comes in as third most bearish extreme standing of the week. The 2-Year Bond speculator level resides at a 4.5 percent score of its 3-year range.

The six-week trend for the speculator strength score was -6.8 this week. The overall speculator position was -1,210,300 net contracts this week with a change of 31,163 contracts in the speculator bets.

Palladium


The Palladium speculator position comes in as this week’s fourth most bearish extreme standing. The Palladium speculator level is at a 4.9 percent score of its 3-year range.

The six-week trend for the speculator strength score was -6.0 this week. The speculator position was -10,302 net contracts this week with a change of -72 contracts in the weekly speculator bets.

Japanese Yen


Finally, the Japanese Yen speculator position comes in as the fifth most bearish extreme standing for this week. The Japanese Yen speculator level is at a 5.0 percent score of its 3-year range.

The six-week trend for the speculator strength score was -17.0 this week. The speculator position was -109,512 net contracts this week with a change of -7,893 contracts in the weekly speculator bets.

Article By InvestMacro – Receive our weekly COT Newsletter

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.

COT Updates Forex and Currency News Opinions
28 Sep

Murrey Math Lines 28.09.2023 (USDCHF, XAUUSD)

By RoboForex.com

USDCHF, “US Dollar vs Swiss Franc”

USDCHF quotes are above the 200-day Moving Average on H4, indicating a prevailing uptrend. The RSI has reached the oversold area. In this situation, the price is expected to test the 8/8 (0.9277) level, rebound from it, and drop to the support at 6/8 (0.9155). The scenario can be cancelled by breaking the 8/8 (0.9277) level. In this case, the quotes could reach the resistance at +1/8 (0.9334).

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, following a rebound from the 8/8 (0.9277) level on H4, the price decline could be additionally supported by a breakout of the lower line of the VoltyChannel.

USDCHF
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

XAUUSD, “Gold vs US Dollar”

Gold quotes and the RSI are in the oversold area. In such circumstances, the quotes are expected to surpass the 0/8 (1875.00) level, rising to the resistance at 2/8 (1890.62). The scenario can be cancelled by a downward breakout of the -1/8 (1867.19) level, which will send the quotes down to the support at -2/8 (1859.38).

XAUUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

On M15, the upper line of the VoltyChannel is too far from the current price so the price rise could be supported by breaking the 0/8 (1875.00) level on H4.

XAUUSD

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News
26 Sep

RoboMarkets Integrates with TradingView to Enhance Trading Opportunities

RoboMarkets, a European broker company, announces its integration with TradingView, a leading platform for charts and analysis. RoboMarkets clients can now implement their trading strategies on TradingView and analyse their performance with a wide range of charting and analysis tools.

Through this integration, RoboMarkets products are made available to a broader audience, including investors who rely on cutting-edge analytics tools to identify opportunities when opening new positions. The goal of this partnership is to provide a seamless and superior trading experience. RoboMarkets clients can now simply connect their accounts to TradingView and trade direclty on the platform, eliminating the need to switch between terminals. Users who do not have an active trading account can open one and instantly link it to TradingView through a user-friendly interface.

TradingView is a platform for charting and trading, enabling users to conduct technical and fundamental analysis with user-friendly tools, while also communicating with each other through the largest social network for investors. Thanks to the integration with TradingView, RoboMarkets clients can now access various advanced analysis tools, including charting tools, market data and technical indicators. Furthermore, they can explore new strategies tested by millions of active traders in TradingView’s fast-growing global community.

About RoboMarkets

RoboMarkets is a financial broker company operating under CySEC license № 191/13. RoboMarkets offers investment services in many European countries and provides traders working in financial markets with access to its proprietary platforms. Visit www.robomarkets.com to learn more about the company’s products and business.

About Tradingview

TradingView is the world’s leading charting platform and a vibrant community used by over 50 million traders around the globe. TradingView empowers its users with best-in-class charting tools, live market data, a comprehensive analytical suite, and trading integrations with selected partners.

It is a unique space where market enthusiasts can chart, chat and trade in one place. Whether you are a crypto advocate interested in btc usd, a forex trader following the dxy index, or a value investor looking for hidden gems with a stock screener — TradingView stores perks and benefits for everyone.

Beyond premier user experience, TradingView provides solutions for businesses, including advertising, news partnerships, market widgets, charting libraries, and broker integrations.

“Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69.88% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.”

Financial News Forex and Currency News
25 Sep

Yen’s Downward Trajectory Continues as Market Anticipates BOJ’s Move

By RoboForex Analytical Department

The USD/JPY pair is drawing nearer to the closely watched 150.00 level, currently experiencing most of its activity around 148.40, as of Monday. The market remains in anticipation of potential financial interventions from the Bank of Japan (BOJ). The BOJ has maintained its ultra-accommodative monetary policy, leaving the yen lingering near ten-month lows.

Last Friday, the BOJ opted to sustain the negative interest rate at -0.10% per annum. The Governor of the central bank highlighted the necessity for additional time to scrutinize the economy and assess the data. For currency market participants and those observing the yen exchange rate, the key concern is not the rate decision per se, but the absence of indications regarding any alterations in the monetary policy framework.

USD/JPY currency pair technical analysis

The H4 chart illustrates that USD/JPY has reached the projected target of a growth wave at 148.44 and underwent a correction to 147.33. The market has finalized a growth structure to 148.47 and is currently forming a consolidation range beneath this level. An upward breakout is anticipated, with the price potentially advancing to 149.42. Upon reaching this level, a correction to 148.44 may occur, followed by a rise to 150.50. The MACD oscillator substantiates this scenario, with its signal line positioned above zero and pointing strictly upwards.

On the H1 chart, a consolidation range has emerged around 148.33. The market is currently on an upward trajectory, aiming for 148.70, with the potential to extend to 149.90. The Stochastic oscillator confirms this scenario, as its signal line, having rebounded from 50, is directed strictly upwards.

The yen continues its descent, with market participants keenly observing any signs of change in the BOJ’s monetary policy framework. Technical analysis suggests potential further growth for USD/JPY, but traders will closely watch for developments and adjust their positions accordingly.

Disclaimer

Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.

Financial News Forex and Currency News
25 Sep

Trade Of The Week: Is the USDJPY a ticking timebomb?

By ForexTime 

The USDJPY has kicked off the new trading week by touching its highest level since November 2022.

Yen bears are clearly in power, with the Japanese yen currently the worst performing G10 currency year-to-date, shedding roughly 11.8% against the dollar.

Last Friday, the Bank of Japan (BoJ) left its ultra-loose monetary policy unchanged and kept its dovish stance despite high inflation. While the policy divergence between the Fed and BoJ remains a key driving force behind the USDJPY’s upside, the threat of government intervention could frighten bulls down the road.

Taking a trip down memory lane, the BoJ intervened back in September 2022 when the yen weakened to 145.90. Two more interventions followed in October after the Yen fell below 150.

Given how the currency is weaker than last year when Japan acted, investors remain on high alert with much chatter around 150 acting as a key level that could trigger government intervention.

It is worth keeping in mind that a weakening Yen results in higher import prices. This is transferred to producers, boosting expectations for higher inflation with consumers feeling the pain. Such a development could be a headache for policymakers, especially when factoring in how Japan’s headline and core inflation remain above the BOJ’s 2% target.

With all the above said, the threat of government intervention has made the USDJPY a ticking timebomb that could explode at any moment…

Here are 3 factors that could impact the currency pair this week:

  1. Fed speeches + US August PCE report

A host of Fed officials, including Fed Chair Jerome Powell will be under the spotlight this week.

Last week’s FOMC meeting concluded with Powell indicating that rates will remain “higher for longer”. Should policymakers strike a hawkish tone and reinforce last week’s messaging, the USDJPY could push higher as expectations rise around the Fed hiking rates once more hike in 2023.

Regarding the August PCE report, markets expect the August PCE report to show headline prices accelerated 0.5% month-over-month after July’s 0.2% increase while the core PCE deflator is forecast to rise 0.2%, same as July. The core personal consumption expenditures price index for projected to rise 3.9% year-over-year in August, down from the 4.2% seen in July.

Ultimately, more signs of cooling inflationary pressures may counteract the argument around the Fed “keeping rates higher for longer”, weakening the USDJPY as a result.

  1. Japan data dump

Investors will be dished out some key economic reports from Japan on Friday.

All eyes will be on the Tokyo inflation data for September, jobless rate, industrial production, and retail sales figures for August which could provide insight into the health of Japan’s economy.

  • Should the overall economic data from Japan print above market expectations, this may boost sentiment towards the Japanese economy – pulling the USDJPY lower as the yen strengthens.
  • If overall economic data disappoints, sentiment toward the Japanese economy could take a hit – pushing the USDJPY higher as the yen weakens.

  1. Technical forces

The USDJPY is firmly bullish on the daily timeframe as there have been consistently higher highs and higher lows. However, prices are slowly approaching overbought conditions while bulls displaying slight hesitation due to key fundamental forces.

  • The current upside could take prices towards the 150.00 psychological level. Beyond this point, the next key level of interest is the 2022 high at 151.94.
  • Should bulls get cold amid intervention fears, prices could slip back below 147.50, 146.70, and 144.90, respectively.

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Forex and Currency News Opinions
22 Sep

Week Ahead: Will EURUSD hit new 6-month low?

By ForexTime 

  • Final week of Q3 2023 may prove relatively less hectic for markets
  • EURUSD still set to uncover trading opportunities
  • Eurozone data may point to even-darker economic outlook
  • US dollar could be boosted by PCE Deflators, hawkish Fed speak
  • Bloomberg model: 74% chance EURUSD trades within 1.0542 – 1.0770

 

Managed to catch your breath yet after such a hectic week in the markets?

At least the coming ahead may prove to be less eventful in comparison, providing a relative breather before we enter the final quarter of 2023.

 

Still, EURUSD traders are bound to discover fresh trading opportunities in the week ahead.

Key data releases from either side of the Atlantic should move the world’s most-traded FX pair.

 

But first, here’s a quick list of major events and data releases due in the final week of September:

Monday, September 25

  • EUR: Germany IFO business climate (Sept)
  • USD: Speech by Minneapolis Fed President Neel Kashkari

Tuesday, September 26

  • EUR: Speeches by ECB’s Robert Holzmann, Philip Lane
  • USD: US consumer confidence (Sept)

Wednesday, September 27

  • JPY: Bank of Japan meeting minutes
  • CNH: China industrial profits (Aug)
  • EUR: Germany consumer confidence (Oct)

Thursday, September 28

  • AUD: Australia retail sales (Aug)
  • EUR: Germany CPI (Sept); Eurozone economic and consumer confidence (Sept)
  • USD: US weekly initial jobless claims; 3Q GDP (3rd estimate)
  • USD: Speeches by Fed Chair Jerome Powell, Richmond Fed President Tom Barkin; Chicago Fed President Austan Goolsbee
  • Nike quarterly earnings

Friday, September 29

  • JPY: Tokyo CPI (Sept); jobless rate, industrial production, and retail sales (Aug)
  • GBP: UK 2Q GDP (final)
  • EUR: Eurozone CPI (Sept); Germany unemployment (Sept)
  • USD: US PCE deflator, consumer spending (Aug); speech by New York Fed President John Williams

 

Data to show still-gloomy Eurozone economy?

Markets have of late been growing more concerned about the Eurozone’s economic prospects.

After all, Germany, the largest economy in the bloc, is widely expected to see its economy shrink for 2023.

And that’s according to economists, the OECD, and even the Bundesbank – Germany’s own central bank.

Amid such a darkening economic outlook, comes also the fact that the Eurozone’s consumer price index (CPI) – which measures headline inflation – remains more than twice the European Central Bank’s 2% target.

The above combo (economic woes + stick inflation) is set to bind the hands of ECB hawks (policymakers who want to send interest rates higher) from triggering yet another rate hike.

At the time of writing, markets are pricing in a mere 24% chance that the ECB can trigger one final 25-basis point hike by January 2024.

To oversimplify …

Greater economic woes = ECB unable to hike, despite sticky inflation = lower EURUSD

 

 

Then, on the USD side of the equation …

Fed speak, US data to offer clues on last Fed rate hike

Several Fed officials, including Fed Chair Jerome Powell, are due to make public speeches in the week ahead.

Such commentary comes hot on the heels after this week’s FOMC meeting (Sept 19-20th), which concluded with Chair Powell pressing home the “higher-for-longer” message.

That is to say, the US central bank is expecting to:

  • hike by another 25-basis points before end-2023 (markets are predicting a 53% chance for one more Fed rate hike by December)
  • keep US interest rates at their peak above 5% for a longer-than-previously expected length of time
  • lower their benchmark rates by “only” 50 basis points in 2024, which is half of the 100-bps in rate cuts previously forecasted by FOMC officials (via their “dot plot) back in June.

Set against such expectations, Powell and co. may be looking to further impress their hawkish messaging onto traders and investors worldwide in this final week of September.

As things stand, existing expectations for the Fed’s policy settings have already lifted the benchmark US dollar index to its highest levels since March.

NOTE: The Euro accounts for 57.6% of this US dollar index, which measures how the greenback performs against a basket of major peers, including the Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, and Swiss Franc.

 

Also look out for Friday’s release (Sept 29th) of the Fed’s preferred measure of inflation, the PCE Deflator.

That set of data is expected to show a mixed picture, based on current forecasts by economists:

  • PCE Deflator month-on-month (Aug 2023 vs. July 2023): 0.5% estimate.
    If so, that would be higher than July’s 0.2% month-on-month number
  • PCE Deflator year-on-year (Aug 2023 vs. Aug 2022): 3.5% estimate.
    If so, that would be higher than July’s 3.3% year-on-year number
  • PCE Core Deflator month-on-month: 0.2% estimate.
    If so, that would match July’s 0.2% month-on-month number
  • PCE Core Deflator year-on-year: 3.9% estimate.
    If so, that would be lower than July’s 4.2% year-on-year number

 

 

POTENTIAL SCENARIOS

  • EURUSD may be dragged to a fresh 6-month low if the coming week’s data out of Germany/Eurozone further sours the bloc’s economic outlook and narrows the ECB’s chances at one last rate hike in this cycle, while the US PCE Deflators and Fed speak strengthen the case for one final Fed rate hike in this cycle.
  • EURUSD may be offered relief and move back higher on better-than-expected economic data out of the Eurozone/Germany, while the US PCE Deflators come in below forecasts which dilute the case for one final Fed rate hike in this cycle.

 

Key levels

At the time of writing, Bloomberg’s FX model points to a 74% chance that EURUSD will trade within the 1.0542 – 1.0770 range over the next one-week period.

Here are some notable price levels within that range for further consideration:
POTENTIAL RESISTANCE

  • 1.06800: support turned resistance level since Dec 2022
  • 1.07369: intraday high on Sept 20th, also around 21-day simple moving average (SMA)
  • 1.07700: upper bound of Bloomberg’s FX model

POTENTIAL SUPPORT

  • 1.06170: intraday low on Sept 21st
  • 1.06000: psychologically-important level
  • 1.05160 – 1.0542: price region between Q1 2023 intraday low and lower bound of Bloomberg model forecasted range

Forex-Time-LogoArticle by ForexTime

ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com

Forex and Currency News Opinions
19 Sep

Japanese Candlesticks Analysis 19.09.2023 (EURUSD, USDJPY, EURGBP)

By RoboForex.com

EURUSD, “Euro vs US Dollar”

EURUSD has formed a Hammer reversal pattern on H4 near the support level. Currently, the instrument is going by the reversal signal in an ascending wave. The pullback target could be the resistance level of 1.0720. However, the price could drop to 1.0625 and continue the downtrend without testing the resistance.

EURUSD
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

USDJPY, “US Dollar vs Japanese Yen”

USDJPY has formed a Hanging Man reversal pattern on H4. Currently, the instrument is going by the reversal signal in a descending wave. The pullback target might be 147.45. However, the price could rise to 148.50 and continue the uptrend without testing the support.

USDJPY
Risk Warning: the result of previous trading operations do not guarantee the same results in the future

EURGBP, “Euro vs Great Britain Pound”

EURGBP has formed an Inverted Hammer reversal pattern on H4. Currently, the instrument is going by the reversal signal in an ascending wave. The growth target could be 0.8655. Upon testing and breaking this level, the price could continue the uptrend. However, the quotes might correct to 0.8610 before rising.

EURGBP

Article By RoboForex.com

Attention!
Forecasts presented in this section only reflect the author s private opinion and should not be considered as guidance for trading. RoboForex LP bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Financial News Forex and Currency News
18 Sep

Coverage Account – Bucketing and Auto Hedging Plugin for MT5 by Your Bourse

Coverage Account – Bucketing and Auto Hedging Plugin for MT5 by Your Bourse

The Coverage Plugin in MT5 is a powerful tool that enables various functions and capabilities within the trading platform. Its primary function is to accumulate opened position volumes from the trading account on the same MT5 server. However, it offers much more than that. In this article, we will explore the features and setup process of the Coverage Plugin, and delve into different scenarios where it can be utilised effectively.

Understanding the Coverage Plugin

The Coverage Plugin in MT5 serves multiple functions, including accumulating position volumes from the trading account on the same server. Additionally, the Your Bourse plugin offers several other capabilities:

  1. Volume Hedging: It enables hedging the volume of lots from the trading accounts to the coverage accounts. The function allows the accumulation of lots from one of the trading accounts to the trading account on the same or different servers.
  2. Symbol Mappings: This capability allows the translation of mapped symbols to core symbols or other mapped symbols. For example, it enables the transfer of volumes from EURUSD.m on the trading account to EURUSD in the coverage account.
  3. Exposure Auto Hedging: This functionality allows for exposure full or partial hedging from B-book to A-book with the possibility to set up a particular volume step increment.
  4. Conditional Hedging: Under certain conditions, such as when the order volume on the B-book exceeds five lots, all customised volume increments can be directed to the A-book coverage account.

Using Coverage Account Auto Hedging Functionality

The Coverage Hedging functionality can be used in various scenarios to suit different trading needs. Here are a few examples:

  1. Common Coverage Scenario: In this scenario, the trades opened or closed will be mirrored in the coverage accounts. This functionality can be enabled in MT5 Administrator.
  2. Mapping Symbols Scenario: This scenario involves transferring orders from mapped symbols in the trading account to core symbols or other mapped symbols on the coverage account. This can be easily configured from the YourBourse portal. When trades are executed on the trading account, corresponding orders will be opened on the coverage account.
  3. Unconditional Hedging Scenario: In this scenario, orders placed in the B-book trading account will be transferred to the B-book coverage account, and an increment value can be configured to be added to the A-book coverage account. The specified increment value will be automatically added to the A-book coverage account for each volume traded on the B-book account.
  4. Conditional Hedging Scenario: In this scenario, orders placed in B-book will be transferred to the B-book coverage account, and, based on specified conditions, a customised increment value will be added to the A-book coverage account. This transfer will occur only if the volume of the order exceeds a predefined unhedged threshold and therefore the position will be hedged.

Setting up Coverage Accounts

The Coverage Plugin consists of several important elements that can be configured on the Your Bourse portal.

To enable coverage hedging functionality, you need to install the coverage plugin, configure the rules on the Your Bourse portal, create trading and coverage accounts, and set up routing rules.

Conclusion

The Coverage Plugin in MT5 provides traders with a range of functionalities and features to enhance their trading experience. By understanding its setup process and various scenarios in which it can be utilised, traders can effectively hedge volumes, map symbols, and customise increments between trading and coverage accounts. The Coverage Plugin offers a versatile tool for risk management and trading strategies on the MT5 platform.

About Your Bourse

Your Bourse offers software solutions for the retail and institutional MT4/MT5 brokers. Including: MT5 gateway & MT4 bridge, multi-asset liquidity aggregation, risk management, client profiling, real-time and historical reporting, MT4/MT5 hosting in all Equinix data centers with 99.999% SLA, plugins for MT4 & MT5 and FIX API connections for the B2B clients.

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