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Net Long Specs Fall As USD Weakens

  • Net specs on USD fell by 10.6K to 131.7K total contracts in the week ended February 1st, their lowest level since September.
  • Interest for the Dollar has been falling in recent weeks despite investors pricing in a hawkish pivot by the Fed; more than 5 hikes are now priced in for 2022 according to the futures market.
  • Net long specs on the US Dollar are down by over 160K contracts since their high of 294.5K reached in the end of November 2021.
  • DXY index has been retracing lower since the start of the month after reaching a local high at 97.44 on January 28.
  • The index found support at its 100DMA (95.2170) on Friday following an unexpected strong NFP print, which came in nearly four times above analysts’ expectations.
  • Next support to watch below the 100DMA stands at 95. On the topside, ST resistance to watch stands at 95.70, followed by psychological 96 level.

Source: Bloomberg/MNI

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