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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FOREX
- Net specs on USD fell sharply in January following the strong USD consolidation in the first half of this month; net contracts are down 74.9K to 154.8K in the week ended January 18 (down nearly 140K from their high of 294K reached in the end of November).
- The rise in Covid uncertainty, political instability in some EM markets and the hawkish Fed had supported the US Dollar in H2 2021; DXY index reached a high at 97 in the end of November before consolidating slightly lower in recent weeks.
- We saw that the second consecutive miss in Payrolls in early January accelerated the downward retracement of the US Dollar, which reached a low of 94.63 on January 14th (supported by 100DMA).
- However, investors’ concern over growth expectations has been rising in the past week and the recent selloff in risky assets has been supporting the greenback.
- SP500 is now down over 10% since the start of January; further downward retracement could result in a more 'dovish' tone from US policymakers.
- DXY index is up sharply against major crosses, currently testing its 96 resistance, which also corresponds to the 50DMA. A break above that level would open the for a move up to 96.46 (early Jan high).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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