Article / 29 January 2018 at 8:32 GMT

COT: Dollar selling accelerated ahead of Mnuchin slump – #SaxoStrats

Head of Commodity Strategy / Saxo Bank
Denmark
  • 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.

Speculative IMM currency positioning
The EUR net-long reached a new record while GBP, the second most popular currency, saw its net-long reach a 3½ –year high.  

The JPY remains the currency most vulnerable to short-covering with the net-short being elevated and not far from the November peak at 136,000 lots.  

Speculative IMM currency positioning
 

Financials:
Speculative positioning in Financials
 

– Edited by Clare MacCarthy

 

Ole Hansen is head of commodity strategy at Saxo Bank

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