CFTC Commitments of Traders – Traders Trimmed Bets on Crude Oil as Price Climbed to 3-Month High
According to the CFTC Commitments of Traders report for the week ended June 16, NET LENGTH for crude oil futures plunged -21 637 contracts to 546 272 for the week. Speculative long positions declined -26 451 contracts while shorts dropped -4 814 contracts. For refined oil products, NET LENGTH for...
CFTC Commitments of Traders – USD Index Futures Drifted to Net Short
As suggested in the CFTC Commitments of Traders report in the week ended June 16, USD Index drifted to NET SHORT of 5 344 contracts. Speculative long positions decreased -10 080 contracts and short positions slipped -47 contracts. Traders trimmed bets on US dollar as risk appetite lifted other...
Canadian Dollar Shrugs Terrible Retail Sales, Taken Mildly Higher by Oil Price
Sterling remains the weakest one among the major currencies as selloff continues. Though, Dollar and Yen are catching up today while markets turned back into risk-on mode. Commodity currencies are generally firmer as led by Aussie. Even Canadian Dollar shrugs of terrible April retail sales data. Instead, the Loonie...
Sterling Weakness Continues as Markets Tread Water
The financial markets are generally treading water in Asian session today, with very limited movements. Yen, Swiss Franc and Dollar are the strongest ones for the weak so far. But there is not much committed buying seen yet. On the other hand, Sterling is the worst performing one for...
BOE Expands QE Size, but Slows Pace of Purchases
BOE turned out to be less pessimistic than we had anticipated. The members acknowledged that global economic contraction in 2Q20 will be “less severe than expected”. While the size of QE is expanded, the members will likely slow the pace of asset buying. The policy rate stayed unchanged at...
Sterling Tumbles after BoE, Markets in Mild Risk-Off Mode
Sterling drops notably today after BoE announced to expand the asset purchase program as widely expected. Australian Dollar is currently following as second weakest, then New Zealand Dollar. Markets are in slight risk-off mode today, as European indices are trading in slight red. Yen and Dollar ride on the...
SNB Intervened Aggressively to Weaken Franc and Pledged to Continue So
SNB left the monetary policy unchanged in June. Meanwhile, the members reiterated the commitment to intervene in the currency market as Swiss franc has remained “highly valued”. Economic and inflation forecasts for this year were sharply downgraded as a result of the coronavirus pandemic and related restrictive measures .
On...
Yen Mildly Higher as Focus Turns to SNB and BoE
The forex markets continue to be lacking a clear direction for now. New Zealand and Australian Dollar are mildly softer today, following weaker than expected data. But losses are so far limited. Yen, Euro and Dollar strengthen mildly but there is also no follow through buying. Focus will turn...
US Crude Inventory Surprisingly Increased, while Petroleum Product Stocks Declined
The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks rose +7.09 mmb to 1446.72 mmb in the week ended June 12. Crude oil inventory added +1.22 mmb (consensus: -0.15 mmb) to 538.07 mmb. Stockpile fell in 2 out...
Euro and Sterling Weaken While Swiss Franc Surge, Dollar Mixed
Swiss Franc surges broadly today and it's currently the strongest one. There is no clear sign of risk aversion in other markets, with major European indices in black, while DOW futures is slightly higher. Yen is also generally soft too. Franc's strength might be an indication of concerns over...
Sterling Turns Softer after CPI, Markets Range-bound Elsewhere
The forex markets are generally in range trading today, with mild weakness seen in Sterling after CPI release. Markets are staying in mild risk-on mode, with Australian Dollar and Canadian Dollar firmer. However, there is no one-sided risk trading as see in the divergence in Yen and Swiss Franc....
Downside Risks of Crude OIl Price Rising Despite Recent Optimism
Crude oil prices have remained firm, supported by positive news from both OPEC+ and better demand/supply outlook. The latest monthly report by the International Energy Agency (IEA) has depicted a more optimistic outlook on the oil market. The agency raised its global oil demand forecast to 91.7M bpd for...
Selling Focus Turns to Euro as Dollar Turns Mixed
Dollar turns mixed in early US session as selloff turns to Euro today. New Zealand Dollar is the second weakest as the country's coronavirus -free days ended. Yen, Dollar and Swiss Fran are not performing well, though, as markets remains in strong risk-on mode. On the other hand, Sterling...
Another U-Turn in Sentiments on Fed, Dollar Back Under Pressure
Sentiments took another U-turn as Fed did the trick again, with expansion of its asset purchases. Asia markets surge broadly, following the strong rebound in US overnight. Dollar, Yen and Swiss Franc are back under pressure. But New Zealand Dollar is the worst performing one for today so far,...
BOE to Expand QE and Discuss Negative Rates
Although there are signs that the coronavirus outbreak in the UK is stabilizing, its economic impact has just been emerged. Record contraction in GDP, sharp slowdown in inflation and weak employment indicators suggest that the BOE would have to maintain a very expansionary monetary policy stance. Together with lukewarm...
Risk Aversion Remains the Main Theme While Gold Reverses
Risk aversion remain a major theme today on concern over coronavirus second wave. DOW futures point to sharply lower open and the index could lose 25k handle. NASDAQ might also have another take on 9500 too. In the currency markets. Swiss Franc, Yen and Dollar are taking turns to...
Asian Markets Lower on Beijing Coronavirus Cases and China Data
Asian markets open the week mildly lower on concerns of another coronavirus outbreak in Beijing. Meanwhile, disappointing economic data from China also weigh on sentiments. Yen, Swiss Franc and Dollar are trading generally higher. Aussie is leading commodity currencies lower. But major pairs and crosses are staying inside Friday's...
Sentiments Took a U-Turn on Fear of Coronavirus Second Wave
The second wave of coronavirus pandemic had finally become a main theme in the markets last week. Or, investors could have just waited for Fed to confirm its done with more easing for moment, and started profit taking. Either way, massive selloff was seen in the stock markets towards...
CFTC Commitments of Traders – Improved Risk Appetite Weighed on US dollar and Lifted Euro. The Trend may Reverse
As suggested in the CFTC Commitments of Traders report in the week ended June 9, NET LENGTH in USD Index fell -3 569 contracts to 4 689. Speculative long positions increased +2 999 contracts and short positions rose +6 568 contracts. Concerning European currencies, NET LENGTH in EUR futures...
CFTC Commitments of Traders – Renewed Coronavirus Concerns may Lead to New Rally in Gold
Gold price continued to consolidate at top range. As we mentioned in the previous report, the yellow metal will resume recent rally after pullback. Renewed concerns about third wave of coronavirus outbreak in the US and China are expected to drive demand for gold. This could lead to increase...