The US Dollar has been a wrecking ball for FX markets as the greenback persistently surges with little signs of ever downing soon. Although, with the latest US CPI coming, some traders are pessimistic about the USD. The bias would be to fade dips in the US Dollar. Elsewhere, USD/JPY broke above 144.00, opening the door to bulls in 24 hours, causing USD/JPY to appear overbought.
A change in view from Governor Kuroda can change the pair’s direction.
The Euro rallies for support at the 0.99 handles, and while we have seen a break below, we are yet to see a close below. Also, as the ECB is gearing up toward a 75bps hike at tomorrow’s meeting, the language used will determine whether the Euro can find a floor.
For example, stating a desire to move into restrictive territory rather than a front-loading policy to play catch up.
Data shows 72.64% of traders are net-long, with the ratio of traders long to short at 2.65 to 1. The number of traders net-long is 7.57% higher than yesterday and 14.38% higher than last week. While the number of traders net-short is 15.92% lower than yesterday and 24.62% lower than last week.