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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 continued to rise in the week ended May 10, increasing by 299.1K to a total of 178.4K contracts.
- Momentum on the dollar has been mainly driven by the renewed geopolitical tensions, the ‘hawkish’ Fed tone and surging stagflation risks.
- Even though odds of a 75bps hike in June have fallen considerably following the Fed May 4 meeting, a 'large 75bps' over the summer cannot be ruled out if inflation continues to come in higher than expected.
- As a reminder, CPI inflation came in at 8.3% YoY in April, slightly more than expected (8.1%) but down from 8.5% the previous month.
- However, 50bps hikes combined with the elevated market uncertainty should be enough to support the USD in the near to medium term.
- DXY index broke above its 104 resistance last week and is currently trading at its highest level since December 2002.
- Next level to watch on the topside stands at 107.31.
- On the downside, support to watch below the 104 level stands at 103.37.
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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