COT: Dollar selling accelerated ahead of Mnuchin slump – #SaxoStrats
- Dollar short spiked even before Mnuchin's plug for weak USD
- GBP, the second most popular currency, saw its net-long reach a 3½ –year high
- JPY remains the currency most vulnerable to short-covering
By Ole Hansen
In the week to January 23 the non-commercial dollar short against nine IMM currency futures rose 23% to $14.2 billion, a 14-week high. This was the day before the dollar slump accelerated following weak dollar comments from the US Secretary of the Treasury Steve Mnuchin. Although these were later corrected by himself and the president, the damage to the greenback had already been done.
– Edited by Clare MacCarthy
Ole Hansen is head of commodity strategy at Saxo Bank