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Short USD Trade Remains Moderately Crowded Despite USD Strength

FOREX
  • Net long specs on the US Dollar increased in the week ended June 21, up 14.1K to a total of 146.5K contracts.
  • Overall, the ‘Short Dollar Trade’ remains moderately crowded despite the US Dollar trading close to a 20Y high.
  • Risk off sentiment amid elevated geopolitical uncertainty combined with the ‘hawkish’ Fed have been the main drivers of the USD this quarter.
  • The DXY index found resistance slightly below the 106 level in mid-June before consolidating lower in the past two weeks, currently trading below the 104 level.
  • Momentum on the greenback remains bullish; ST support to watch on the downside stands at 103.12, which corresponds to the 50DMA (where the Dollar found support several times in end of May / early June).
  • On the topside, first resistance stands at 104.94, followed by 105.79.

Source: Bloomberg/MNI

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  • Net long specs on the US Dollar increased in the week ended June 21, up 14.1K to a total of 146.5K contracts.
  • Overall, the ‘Short Dollar Trade’ remains moderately crowded despite the US Dollar trading close to a 20Y high.
  • Risk off sentiment amid elevated geopolitical uncertainty combined with the ‘hawkish’ Fed have been the main drivers of the USD this quarter.
  • The DXY index found resistance slightly below the 106 level in mid-June before consolidating lower in the past two weeks, currently trading below the 104 level.
  • Momentum on the greenback remains bullish; ST support to watch on the downside stands at 103.12, which corresponds to the 50DMA (where the Dollar found support several times in end of May / early June).
  • On the topside, first resistance stands at 104.94, followed by 105.79.

Source: Bloomberg/MNI