Dollar slid after fed projected three hikes in 2018

Dmitry Lukashov IFC Markets

US dollar short bets slipped to $21.73 billion from $22.0 billion against the major currencies during the previous week as the Federal Reserve raised interest rates 0.25 percentage points, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to March 27 released on Thursday March 29. The ICE US dollar index declined as the policy makers projected at conclusion of March 22 meeting just two more rate hikes in 2018 instead of three as indicated previously.

CFTC Sentiment vs Exchange Rate

March 20 2018	Bias	Ex RateTrend	Position $ mln	Weekly Change
CAD	bearish	negative	-2101	-3980
AUD	bullish	positive	620	-758
EUR	bullish	negative	21868	1553
GBP	bullish	negative	3024	941
CHF	bearish	negative	-1248	-169
JPY	bearish	negative	-435	2146
		Total	21729

Want to get more FREE Analytics? Open Demo Account now to get daily analytical materials and video overviews, experts' opinions etc. Don't forget to subscribe to our YouTube channel.

Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.