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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 3, increasing by 69.1K to a total of 149.2K contracts.
- Momentum on the dollar has been mainly driven by the renewed geopolitical tensions and the ‘hawkish’ Fed tone.
- Last week, the Fed raised its policy rate by 50bps (as expected), delivering the biggest rate-hike since 2000, and also announced that it will start QT on June 1.
- Even though the FOMC meeting was considered ‘dovish’ by market participants (75bps hike off the table for now), support for the US Dollar may remain strong in the near term amid market uncertainty and rising geopolitical risk.
- We have seen recently that the ‘Long USD Trade’ remains moderately crowded despite the DXY index breaking above the Covid highs.
- DXY index has been testing the psychological level 104 in the past week; a break above that level would open the door for a move up to 107.31 (December 2012 highs).
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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