Forex Outlook: US Dollar gained last week vs Major Currencies, Non-Farm Payrolls Report Highlights this week’s trading
The US dollar advanced versus all the major currencies last week and rose higher against most of them for a second straight week as market traders continued to position themselves for the potential unwinding of the US Federal reserves quantitative easing program. This week has some very big fundamental events to watch for with the highlight being the US Non-Farm Payrolls Employment data on Friday.
There are also interest rate decisions out of Australia, the United Kingdom and the Eurozone to look out for as well as some manufacturing data out of the US and China and other 2nd tier releases. See more currency pair comments and economic event highlights below.
Large Currency Speculators trimmed US Dollar bullish bets last week for 4th straight week
The weekly Commitments of Traders (COT) report, released on Friday by the Commodity Futures Trading Commission (CFTC), showed that large futures traders and speculators decreased their total bullish bets of the US dollar last week for a fourth consecutive week.
Non-commercial large futures traders, including hedge funds and large International Monetary Market speculators, trimmed their overall US dollar long positions to a total of $13.28 billion as of Tuesday June 25th. This was a decline from the total long position of $14.55 Billion registered on June 18th, according to position calculations by Reuters that derives this total by the amount of US dollar positions against the combined positions of euro, British pound, Japanese yen, Australian dollar, Canadian dollar and the Swiss franc.
USD net long positions are at their lowest level since February 19th when bullish positions equaled $1.481 billion, according to Reuters data calculations.
Highlights of Fundamental Economic Events Next Week
Sunday, June 30
China — leading index
Japan — Tankan manufacturing data
Australia — manufacturing index
Monday, July 1
China — manufacturing PMI
euro zone — consumer price index
United States — ISM manufacturing data
euro zone — purchasing managers index
United Kingdom — purchasing managers index
Tuesday, July 2
Australia — interest rate decision
euro zone — producer price index
United States — factory orders data
Wednesday, July 3
China — non-manufacturing PMI
Australia — retail sales data
Australia — trade balance
United States — ADP employment data
euro zone — retail sales
United States — weekly jobless claims
United States — trade balance
United States — ISM non-manufacturing
Thursday, July 4 – *American Holiday
United Kingdom — BOE interest rate decision
euro zone — ECB interest rate decision
Friday, July 5
Japan — leading index
Switzerland — consumer price index
United States — non-farm payroll report
Canada — employment change report
Canada — Ivey purchasing managers index