27 Apr 2015
USD rally stalling and sentiment shifting – Scotiabank
FXStreet (Barcelona) - Camilla Sutton CFA, CMT, Chief FX Strategist at Scotiabank, mentions that the recent CFTC and shift in sentiment signals that USD rally has made a temporary halt.
Key Quotes
“Since March 13th, the USD DXY index has failed to reach a new high and technically has shifted into bearish territory, warning of a temporary end of the USD rally. Sentiment indicators are suggesting a similar pattern.”
“The CFTC CoT data details an easing in bearish sentiment towards most currencies and a stabilization against EUR.”
“In addition, risk reversals have all shifted to protect less aggressively against USD upside risk. The shift in sentiment reinforces a temporary stalling of the USD rally.”
Key Quotes
“Since March 13th, the USD DXY index has failed to reach a new high and technically has shifted into bearish territory, warning of a temporary end of the USD rally. Sentiment indicators are suggesting a similar pattern.”
“The CFTC CoT data details an easing in bearish sentiment towards most currencies and a stabilization against EUR.”
“In addition, risk reversals have all shifted to protect less aggressively against USD upside risk. The shift in sentiment reinforces a temporary stalling of the USD rally.”