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Investing.com sentiment index: speculators add to bullish dollar bets

Published 06/06/2016, 12:44
Updated 06/06/2016, 12:48
© Reuters.  Investing.com sentiment index: speculators add to bullish dollar bets for 4th straight week
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Investing.com - The Investing.com weekly sentiment index published on Monday revealed that speculators added to their bullish bets on the U.S. dollar for the fourth straight week last week.

The dollar has benefited from hawkish comments from Federal Reserve officials in recent weeks, which seemed to suggest a summer interest rate hike was imminent.

This week's sentiment data, however, did not cover Friday's dismal U.S. nonfarm payrolls data, which all but ruled out a rate hike later this month.

Traders are currently pricing in just a 4% chance for a rate hike this month, down from 21% late last week, according to CME Group's (NASDAQ:CME) FedWatch tool.

According to the report, 50.6% of market participants held long positions in USD/JPY in the week ended June 3, rising from 48.8% a week earlier.

Meanwhile, 32.5% of investors held long positions in EUR/USD as of last week, falling from 35.6% in the preceding week, 38.1% of investors were long GBP/USD, compared to 37.4% in the previous week, while 45.9% of investors were long USD/CHF, increasing from 42.8%.

Amongst the commodity-linked currencies, 41.0% were long USD/CAD, declining from 44.7% a week earlier, 42.8% held long positions in AUD/USD, compared to 42.5% in the preceding week, while 38.4% were long NZD/USD, down from 48.2% a week earlier.

The report also showed that 55.9% of market participants held long positions in gold futures as of last week, sliding from 56.3% in the preceding week.

Elsewhere, 32.1% of investors were long the S&P 500, dropping sharply from 54.7% a week earlier.

A reading between 50%-70% is bullish for the instrument, a reading between 30% and 50% is bearish, a reading above 70% indicates overbought conditions and a reading below 30% indicates oversold conditions.

The Investing.com series of indexes is developed in-house. Each index measures overall exposure to major currency pairs, commodities and indexes, using data from futures exchanges and OTC providers on all long and short open positions.

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