Free Trial
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
- One interesting development in markets since the start of the year has been the dramatic plunge in USD non-commercial positions despite the dollar surge due to the Russia/Ukraine conflict.
- Total USD net specs fell by 1.8K contracts to -8.9K in the week ended March 8 (capturing February NFP release and the sharp deceleration in hourly earnings), their lowest level since July 2021.
- The chart below shows the interesting divergence between the two times series – net USD specs and DXY index – since the start of the conflict; the ‘crowded Long USD Trade’ has now completely ‘vanished.
- The geopolitical uncertainty has led to a surge in the ‘safe-haven’ USD in recent weeks, with DXY currently trading around 99, its highest level since May 2020.
- Support for the greenback could continue to rise ahead of upcoming Russia external bond payments this week.
- Next resistance to watch on DXY stands at 99.7290, which corresponds to the 76.4% Fibo retracement of the 89.21 – 102.98 range, followed by psychological 100 level.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok