Speculators turn ‘net long’ the dollar

“Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.” - Warren Buffett

 

 

HEADLINES

 

 

• U.S. dollar net longs climb to highest since early March 2020 -CFTC
• EUR/USD advances to new highs beyond 1.1900, recedes afterwards
• Pound Sterling Banks Gains, but BoE Risks Could Slow the Charge
• Gold retreats as firmer dollar halts Fed-inspired rally
• Wall Street falls with Amazon; S&P 500 posts sixth straight month of gains
• EUR/CHF: Downside momentum persists – Commerzbank

 

 

FOREX

 

 

U.S. dollar net longs climb to highest since early March 2020 -CFTC

 

U.S. dollar net longs rose in the latest week to their highest level since early March last year, according to Reuters calculations and Commodity Futures Trading Commission data released on Friday. The value of the net long dollar position advanced to $2.99 billion in the week ended July 27, from net longs of $399.69 million the previous week. U.S. dollar positioning flipped to net longs last week after being net short for 16 months.

 

EUR/USD advances to new highs beyond 1.1900, recedes afterwards

 

EUR/USD posts gains for the fifth consecutive session on Friday, always on the back of the renewed and strong selling bias in the dollar and positive results from the euro docket. Indeed, the greenback remains well under pressure as investors keep digesting the outcome from the latest FOMC event (Wednesday), while US yields stay side-lined well below 1.30%.

 

Pound Sterling Banks Gains, but BoE Risks Could Slow the Charge

 

The British Pound has rebounded against most major currencies as July comes to a close, but this week's pivotal Bank of England policy update could invoke some caution amongst investors. Advances by the Pound come amidst falling Covid cases in the UK and an assumption the Bank of England (BoE) will be amongst the first tranche of Developed Market central banks to raise interest rates in light of a strengthening economy and rising inflation levels.

 

 

COMMODITIES

 

 

Gold retreats as firmer dollar halts Fed-inspired rally

 

Gold prices eased on Friday, with a firmer dollar curtailing the precious metal’s brief rally spurred by U.S. Federal Reserve Chair Jerome Powell’s reassurance that a rate hike was not on the cards for the time being.

 

 

STOCKS

 

 

Wall Street falls with Amazon; S&P 500 posts sixth straight month of gains

 

U.S. stocks fell on Friday and registered losses for the week as Amazon.com shares dropped after the company forecast lower sales growth, but the S&P 500 still notched a sixth straight month of gains. Amazon.com Inc shares sank 7.6% - their biggest daily percentage drop since May 2020… Shares of other internet and tech giants that did well during the lockdowns of last year, including Google parent Alphabet Inc and Facebook Inc, were mostly lower as well.

 

 

ANALYSIS

 

 

EUR/CHF: Downside momentum persists – Commerzbank

 

“EUR/CHF is grinding lower but the recent low has again not been confirmed by the daily RSI. There is a loss of downside momentum, but for now the market continues to weigh on the downside. Attention is on 1.0741/36, the 2021 low, the December low and the 78.6% retracement, we look for this to hold the downside. The 1.0736 December low is regarded as the break down point to the 1.0629 November low… Nearby resistance is seen at the June low at 1.0872 and also at the May 11 and 24 lows at 1.0925/27.”

 

 

CHART

 

 

Bitcoin / US dollar – 4 hour Candlesticks

Source: GKFX Prime Metatrader 4

BTC/USD reached its highest since it entered a bear market in May. Price is attempting to breakout of the 30k-40k range. A breakout could target the supply zone around 50k. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-chf-downside-momentum-persists-commerzbank-202107300918
https://www.fxstreet.com/news/eur-usd-advances-to-new-highs-beyond-11900-recedes-afterwards-202107301012
https://www.poundsterlinglive.com/gbp-live-today/15749-pound-to-euro-and-dollar-wells-fargo-forecasts
https://www.reuters.com/business/wall-street-falls-with-amazon-sp-500-posts-sixth-straight-month-gains-2021-07-30/
https://www.reuters.com/article/cftc-forex/corrected-update-1-u-s-dollar-net-longs-climb-to-highest-since-early-march-2020-cftc-reuters-idUSL1N2P62SB
https://www.reuters.com/article/global-precious/precious-gold-retreats-as-firmer-dollar-halts-fed-inspired-rally-idUSL4N2P63YK