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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 specs on USD continues to increase as falling growth expectations keep increasing investors' preference for the US Dollar; net contracts increased by 12.7K to a total of 110.6K in the week ending August 31, the highest level since October 2019.
- The USD depreciation following Powell's 'dovish' speech at Jackson Hole in addition to the 'big NFP miss' last week could be just temporary as demand for the greenback could start to rise again in the short term as Fed taper nears.
- Consensus is currently pricing in the Fed to announce the tapering in November for a December start. Investors are now questioning how long will the tapering last for? For instance, a 15bn USD cut in asset purchases at each meeting would imply that it would take 8 meetings to end the current program (12 months), which would delay the first hike for H1 2023.
- The USD index has been retracing lower in the past 10 days after reaching a local high at 93.73 on August 20; the Dollar has been rising this morning after finding support at the 92 level on Friday; ST support to watch on the downside stands at 91.64 (100DMA).
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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