Dollar weakens on mixed data


US dollar short bets rose further to $3.94 billion from $3.14 billion against the during the previous week, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to November 28 released on Friday December 1. Dollar sentiment deteriorated on mixed economic data despite Federal Reserve Chair nomine Powell’s assurance at Senate hearing he would follow the current policy of gradual rate increases.

The economic data during the week were mixed: US durable goods orders fell 1.2% in October, its second drop this year. Consumer sentiment index by the University of Michigan fell to a reading of 98.5 from October’s 100.7, and purchasing managers indexes’ preliminary estimates showed businesses grew in November at the slowest pace in four months. On the positive side new home sales hit an annual rate of 685 thousand in October, above an expected 627 thousand and the S&P/Case-Shiller national index of house prices rose 6.2% over year in September, the fastest pace in more than three years. Dallas Fed President Kaplan’s comment an interest rate hike “will likely be appropriate, in the near future” supported the dollar. Investors built net short bets against the dollar. As is evident from the Sentiment table, sentiment deteriorated for all major currencies except the British Pound , Canadian dollar and yen . And the Pound joined the Canadian and Australian dollars together with euro as the fourth major currency held net long against the US dollar.

CFTC Sentiment vs Exchange Rate

November 28 2017BiasEx RateTrendPosition $ mlnWeekly Change

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

Start trading with IFC Markets

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.