OctaFX | OctaFX Forex Broker
Open trading account

Forex Flash: USD longs doubled; CAD at risk of squeeze - TDS

CFTC data showed speculative currency accounts moving into further USD buying in the week through Tuesday, March 5th, the TDS team notes on their CFTC summary report.

"The shift toward the USD has been a steady trend since the beginning of February and the implied USD net long more than doubled this week to USD 18.3 bn (from USD 8.6 bn)" TDS comments.

TDS adds: "A sharp boosting of EUR net shorts was the largest positioning shift by value. Net short contracts nearly tripled to 26.1k (from 9.4k last week) on dovish expectations of ECB." TDS suggests that post Draghi, EUR shorts likely to be trimmed.

However, the most remarkable takeaway from the CFTC, as TDS notes, was "the huge extension of the net short CAD position, the second largest change by value, but perhaps the most notable story" they say, adding that "net short CAD more than doubled to 46.7k (from 21.4k), that’s the largest net short since Q1 2007, and such an extreme is at considerable risk of a squeeze."

Forex Flash: Look for AUD/USD to revisit 1.0115 - NAB

After the RBA communicated last week that they still remain comfortably on hold, according to NAB strategists, "upcoming data in Australia will need to be very weak to shift RBA expectations.
Read more Previous

Forex: EUR/JPY unchanged below 125.00

EUR/JPY is totally flat for the week so far at 124.85 last, as USD/JPY is slightly higher and EUR/USD is slightly lower. Nikkei index opened printing yet another fresh high shy of the 11400 points mark, highest since Sept 2008, up +0.83% for the day so far, while upcoming BoJ's chief Kuroda was giving a speech. Japan Core machinery orders data fell -13.1% in Jan on monthly basis, while -9.7% year on year.
Read more Next
Start livechat