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Forex News
IMM commitment of traders report shows net JPY long noncommercial positions vs USD fell to 23,365 contracts in week to June 3 vs 33,304 contracts in week earlier, reflecting reduced worries over USD downturn, higher expectations of Fed rate hike within year supporting USD. Yet, after poor U.S. unemployment report, renewed record level of oil, "the dollar is at a new risk of decline unless some dollar-supportive material comes out soon again," says trader, suggesting JPY longs may be on rise.
Brown Brothers Harriman compares market-moving comments from Fed Bernanke, ECB Trichet last week: Notes Bernanke "spoke plainly and clearly and yet was nearly universally misunderstood, but the market tended to like what it thought he was saying"; in contrast, Trichet "was perfectly understood and investors did not particularly like what he said". Concludes from comments that "Trichet has trumped Bernanke in part because Bernanke was not announcing a new policy. Trichet clearly was". Expects USD may take longer than previously thought to carve out a bottom vs EUR, lifts year-end EUR/USD view from 1.44 to 1.47. Pair last 1.5783.
Brown Brothers Harriman compares market-moving comments from Fed Bernanke, ECB Trichet last week: Notes Bernanke "spoke plainly and clearly and yet was nearly universally misunderstood, but the market tended to like what it thought he was saying"; in contrast, Trichet "was perfectly understood and investors did not particularly like what he said". Concludes from comments that "Trichet has trumped Bernanke in part because Bernanke was not announcing a new policy. Trichet clearly was". Expects USD may take longer than previously thought to carve out a bottom vs EUR, lifts year-end EUR/USD view from 1.44 to 1.47. Pair last 1.5783.
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