16 Feb 2015
CFTC data risks a deeper correction in USD – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, views the loss of momentum in dollar’s advance and positioning, creating a risk for a deeper correction in the dollar.
Key Quotes
“While last week's CFTC data showed no significant build-up of long dollar positions, they don't show the long unwinding either.”
“The euro short remained huge, last Tuesday anyway, even if Swiss franc and Japanese yen shorts have shrunk.”
“Loss of momentum in the dollar's advance combined with such a sizeable long positioning creates a risk of a deeper correction. Until the market is reminded of the reasons why the dollar's going up in the first place, namely economic and policy divergence, and a turn in the trend of capital flows.”
Key Quotes
“While last week's CFTC data showed no significant build-up of long dollar positions, they don't show the long unwinding either.”
“The euro short remained huge, last Tuesday anyway, even if Swiss franc and Japanese yen shorts have shrunk.”
“Loss of momentum in the dollar's advance combined with such a sizeable long positioning creates a risk of a deeper correction. Until the market is reminded of the reasons why the dollar's going up in the first place, namely economic and policy divergence, and a turn in the trend of capital flows.”