Dollar bearish bets rise as Fed announced it would buy unlimited amount of bonds

March 30, 2020

By IFCMarkets

US dollar net short bets rose to $8.86 billion from $8.28 billion against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to March 24 and released on Friday March 27. The change in overall dollar position was due to increase in bullish bets on euro while bullish bets on British Pound, Swiss franc and Japanese yen were cut. Australian and Canadian dollars maintained net short positions against the dollar. Bearish dollar bets rose as the Federal Reserve announced it would buy unlimited amount of Treasurys and mortgage-backed securities, and bolster emergency lending facilities. Before that the European Central Bank announced the start of a new stimulus program to buy bonds worth 1.1 trillion euros throughout this year.

 

CFTC Sentiment vs Exchange Rate

March 24 2020 Bias Ex RateTrend Position $ mln Weekly Change
CAD bearish positive -2027 -1351
AUD bearish positive -1507 213
EUR bullish positive 8281 3807
GBP bullish positive 802 -605
CHF bullish positive 624 -337
JPY bullish positive 2683 -1156
Total 8856

 

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