Dollar Flat, but Bullish Bets Continue Ahead of Jobs Data

Dollar Flat, but Bullish Bets Continue Ahead of Jobs Data
Dollar Flat, but Bullish Bets Continue Ahead of Jobs Data
© Reuters.

By Yasin Ebrahim

Investing.com – The dollar was flat Monday after snapping its two-week win streak last, but the data continues to show traders are positioning for more upside ahead. 

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.1% to 92.08.  

U.S. dollar net longs climbed in in the week ended July 27, to their highest level since early March last year, according to Reuters calculations and Commodity Futures Trading Commission data released on Friday.

The bullish bets on the greenback come as investors position for a less accommodative Federal Reserve. 

“This move in the dollar’s positioning is an indication of how markets continued to increase their bullish sentiment on the greenback, thanks to a less supportive risk environment with growing doubts about the global recovery (which prompted an unwinding of reflationary trades) and to the Fed moving closer to normalising monetary policy,” ING said in a note. 

The monthly jobs data due Friday, will take on added importance and could play a role in the Fed’s thinking on tightening monetary policy. 

The Federal Reserve kept interest rates steady last week, and pledged to keep a closer eye on progress toward its threshold to start tapering monthly bond purchases at upcoming meetings.

“Following last week’s FOMC meeting, the economic data will take center stage this week – namely, Friday’s July employment report. As Chair Powell noted in his post-meeting press conference last week ‘substantial further progress’ is ‘some ways away’ with the labor market still having ‘some ground to cover,’” Deutsche Bank (DE:) said in a note. 

“While Powell confirmed that he will give a speech at Jackson Hole, the tapering markers he laid out suggest that event could be too early for a clear signal from the Chair. The September FOMC meeting is thus more likely for advance warning about tapering. With regards to the official tapering announcement, the overall messaging from that meeting was consistent with our baseline expectation for the November FOMC meeting.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *

AdonFinance
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance