Inflation and retail sales data improve US dollar sentiment | IFCM
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Inflation and retail sales data improve US dollar sentiment

21/8/2017

US dollar net short bets fell to $8.84 billion from $10.23 billion against the major currencies during the previous week, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to August 15 released on Friday August 18. Inflation and retail sales increased in July pointing to continued growth of US economy.

Both the inflation on month and headline inflation rose 0.1 percentage point in July to 0.1% and 1.7% respectively. Retail sales rose to 0.6% on month from 0.3% in June with a 4.2% increase from a year ago compared to upwardly revised 3.4% in June. Increases in export and import prices in July were also positive developments together with increase in business inventories. Investors cut their net short dollar position as data pointed to continued expansion of US economy. As is evident from the Sentiment table, sentiment improved for Japanese yen, Australian dollar and Swiss frank. And the euro, Canadian and Australian dollars remain the three major currencies held net long against the US dollar.

The euro bullish sentiment weakened considerably as data showed euro-zone economy slowed unexpectedly in June with industrial production contracting 0.6% on month and German GDP growth in second quarter slowing to 0.6% on quarter from 0.7%. The net long euro position fell $2.13bn to $11.63bn. Investors cut the gross longs and built shorts by 10895 and 3513 contracts respectively. The British Pound sentiment deteriorated as the trade deficit widened in June and consumer price index fell 0.1% on month in July. The net short position in British Pound widened $0.52bn to $2.56bn as investors built both the gross longs and shorts by 5193 and 11893 contracts respectively. The bearish Japanese yen moderated considerably as the GDP growth accelerated in the second quarter to 1% from 0.3%. The net short position in yen narrowed $2.1bn to $8.76bn. Investors built the gross longs and covered shorts by 3498 and 14823 contracts respectively.

The Canadian dollar sentiment deteriorated significantly as building permits and new housing prices slowed their growth in June and July. The net long Canadian dollar position fell $0.93bn to $4.03bn. Investors cut both the gross longs and shorts. The Australian dollar sentiment improved as the net longs rose by $72 million to $4.66bn. Investors built the gross longs and covered shorts. The sentiment toward the Swiss franc improved slightly as the net shorts narrowed by $28 million to $152 million. Investors cut both the gross longs and shorts.


CFTC Sentiment vs Exchange Rate

August 15 2017BiasEx RateTrendPosition $ mlnWeekly Change
CADbullishnegative4028-933
AUDbullishpositive466072
EURbullishpositive11625-2131
GBPbearishpositive-2562-520
CHFbearishpositive-15228
JPYbearishpositive-87612096
  Total8838 

commitment of traders net long short

commitment of traders weekly change

market sentiment ratio long short positions

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.


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