Since End of January JPY keeps showing strength and domination over the major currencies board which are ( USD, NZD, CAD, EUR, CHF, GBP and AUD). The situation has not changed so far until last weekly close; the world buyers have a strong focus on the Japanese yen price. The situation gives more sens to the bullish bias of “The safe heaven asset”, Gold.
However The COT report of last week shows an increase of short position held by the commercials and a decrease of the buys; the same conditions are observed in reverse with the leveraged funds who cut off considerably their short positions on the current price while not adding to the longs neither. Is the long term upward move coming to it end ?
The Canadian Dollar comes to be the one which records the most weakest strength across the majors board; Most big investors might be actually dumping it as Crude oil recorded 2 weeks ago a 4 years high, breaking 62.47$ level.
The COT report on CAD Shows a decrease of the shorts with no considerable long positions added by the commercials while leveraged funds on the other hand are increasing their shorts but probably hedging with few long positions. This situation shows no big changes on this currency bias whish in my opinion might remain weak; but how long?
Leave a Reply