Dollar weakens on mixed data


4/12/2017

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
CADbullishpositive356533
AUDbullishpositive2954-61
EURbullishpositive13278-717
GBPbullishpositive382407
CHFbearishpositive-3837-86
JPYbearishnegative-124061221
  Total3935 

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

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