Wednesday, June 15, 2016

Speculative Long Positions In USD Continue To Drop

by: otterwood
The chart below shows the relation between the US dollar index and speculative positioning in the USD futures. Speculative positions held by individual investors, hedge funds, and large financial institutions tend to lead changes in the USD, see the chart below.
The red arrows show peak positioning and eventual falls in the USD while green arrows show troughs in positioning and subsequent increases in the USD.

As can be seen in the chart US dollar positioning peaked in the beginning of 2015 and has been in a down trend ever since. Considering all of the Fed’s flip flopping the next major move in the USD may more likely be to the downside.

No comments:

Post a Comment