Saturday October 14, 2017 - 15:04:35 GMT
Share This Story
Global-View - www.global-view.com
Commitment Of Traders Report for 10 October 2017 Data Register To Test Your Amazing Trader
Forex trading is all about stops. The Commitment of Traders Report (COT) is an imperfect, but useful, "sampling" of market positioning. I would prefer more frequent and precise readings, but we have to live with what we get. The data work for the purpose of getting an idea if traders are positioned long or short and if they in big or small.
EURUSD net long positions remain in a roughly steady 80-100K contracts range. The heavy blue line (once a week spots) provides a useful perspective on the price action. In the latest week the market returned to its prevailing 1.18 to 1.20 band. The EURUSD is looking suspiciously capped at 1.2000.
As the alternatine reserve currency to the USD, keep in mind EUR positions are not just against the USD. EUR crosses vs. the JPY and GBP are critical. The European economy continues to improve and that should remain a EUR positive.
The market remains long USDJPY (short JPY). Despite the latest USDJPY decline. The North Korea threat is an ever-present issue. Whenever North Korea tensions escalate, JPY demand surfaces as Japanese investors repatriate funds back home on a flight to safety. Given Japan's proximity to the Korean Peninsula, one might have expected funds to flow in the opposite direction.
The USDJPY pair tends to been heavily manipulated by the Bank of Japan. It typically tries to keep the currency depressed to promote exports. Whenever the USDJPY starts to slide, expect to encounter covert BOJ USDJPY support. The USDJPY often correlates positively with the yield on the U.S. 10-yr note.
Net GBPUSD positions flipped long three weeka ago. BOE Governor Carney recently turned the tone of policy statements to hawkish. U.K. economic data over the past several weeks generally have become more constructive. The GBPUSD spot line (heavy blue) have been unevenly reflecting an improving outlook for the U.K. economy.
This unit is more sensitive than most to its economic data. This characteristic makes it more attractive to those of us who rely on active markets. Keep an eye on the EURGBP cross as a barometer of flows in and out of the EUR. These flows often directly impact both units against the USD.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."