Smart money reduces Dollar Index short position
US Dollar Index:
The NYBOT traded contract saw the commercials
decreased their short positions following another week of sharp sell-off in the
dollar index. Volume remains high as index tumbled below the psychologically
important 90.00 handle, with the On Balance Volume indicator signaling an
increase of the downside volume.
Speculative positions reduced their net long
exposure with 17,383 net long contracts, while commercials decreased their net
short position to 17,907 net short contracts. Open interest rose by additional
4,432 contracts added to 35,108 contracts outstanding.
EUR:
Euro speculative traders significantly reduced
their bets against the single currency as speculative short positioning fell
sharply to 1,063 contracts, while overall open interest rose by 13,039 contracts
from the previous week to 192,392 contracts outstanding as single currency
headed toward the psychologically important 1.2000 handle. Commercial traders
reduced their net long positions to 3,321 contracts as Euro once again failed to
hold the psychologically important 1.2000 handle.
GBP:
British pound traders reduced their short
speculative positions as the pair rose above the 1.7500 handle, with speculative
trader’s holding net short of 7,856 contracts. Commercial traders reduced their
net long exposure to the sterling with commercial net longs falling to 9.897
contracts. Open interest rose, with 4,044 additional contracts entering the
market, brining total to 111,268 contracts outstanding.
CHF:
Swiss Franc speculative traders reduced some of
their net short positions to 39,861 contracts as pair headed toward the 1.2900
handle. Commercials further reduced their net long positions with overall net
longs at 49,865 contracts, thus adding to an outlook that the pair might head
back toward the psychologically important 1.3000 handle. Open interest rose by
8,496 contracts to 113,909 contracts outstanding.
JPY:
Japanese Yen speculative positions remained net
short as pair broke below the 120.00 handle, with speculative traders increasing
their exposure to 72,063 net short contracts outstanding. Commercials maintained
their net long positions with 75,678 net long commercial contracts outstanding.
Open interest rose by 23,286 contracts to 243,599 contracts outstanding.
CAD:
Canadian dollar speculative positions added to
their existing net longs, with speculators sharply increasing their net long
exposure with 56,183 net speculative long contracts in the market. Commercials
further increased their net short positions to 77,655 net short contracts,
expecting the pair to head above the 1.2000 handle. Open interest rose sharply
by 24,113 contracts to 142,450 total contracts outstanding.
AUD:
Australian dollar speculative positions once
again rose to 20,282 net speculative long contracts in the market as the pair
headed toward the .7500 handle. Commercial traders and hedgers added to their
net short positions to net short with 30,161 net short contracts as large
institutions most likely expect the pair to head toward the psychologically
important .7000 handle. Open interest rose sharply by 11,180 contracts to 82,817
total contracts outstanding.
Sam Shenker
Sam Shenker is a Technical Currency Analyst for Forex
Capital Markets (FXCM). Sam is the author of the Daily and Weekly Technical
Research reports at FXCM. His reports include: Daily Technicals, Weekly Crosses
and the Weekly Chart Pack. Prior to joining FXCM, Sam spent a number of years on
Wall St trading equities, equity derivatives and futures. He also specialized in
research and analysis of high yield bonds, corporate bankruptcies,
restructurings, reorganizations and venture capital.