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USD has lost some upward momentum in the near-term – BTMU

FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ notes that the US dollar has continued to weaken modestly in the Asian trading session extending its decline following the release of the weaker than expected non-farm payrolls report from late last week.

Key Quotes

“The report failed to reinforce upward US dollar momentum in the near-term with the dollar index still holding below key resistance from the June 2010 high at 88.71.”

“The latest IMM report revealed that long speculative US dollar position jumped further to a new record high totalling 537,955 contracts in the week ending the 4th November.”

“The report highlights that long US dollar speculative positioning is increasingly becoming a very crowded trade which leaves it more vulnerable to pullbacks in the near-term on the back of disappointing economic data from the US which acts to dampen Fed rate hike expectations.”

“The yen has been one of the main beneficiaries of US dollar weakness overnight as USD/JPY has fallen back towards the 115.00-level. Speculation has continued to build in Japan that Prime Minister Abe will soon announce both a delay to the planned sales tax hike schedule and call for snap elections by the end of the year”

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