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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 long specs on the US Dollar ticked slightly higher in the week ended April 26, increasing by 8.2K to a total of 80K contracts.
- Momentum on the dollar has been mainly driven by the renewed geopolitical tensions (EU preparing for new sanctions against Russia including oil&gas) and the ‘hawkish’ Fed tone.
- St. Louis President Bullard mentioned recently that a potential 75bps hike cannot be ruled out given the current level of inflation.
- Interestingly, the ‘Long USD Trade’ is moderately crowded despite the DXY index breaking above the Covid highs last week.
- DXY found resistance at the psychological level 104 last week before consolidating slightly lower in recent days; a break above that level would open the door for a move up to 107.31 (December 2012 highs).
- The Fed is meeting this week and is likely to accelerate the pace of its tightening cycle by lifting its policy rate by 50bps.
- With the FFZ2 futures contract currently trading at 97.27, the market is pricing in a FFR at 2.75% by the end of the year.
Source: Bloomberg/CFTC/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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