empty
30.04.2024 01:09 AM
CFTC report: faith in the dollar grows stronger

The net long USD position increased by 7.2 billion to 32.6 billion over the reporting week. Speculative investors are actively buying the dollar, as they increasingly believe that the US currency will strengthen in the coming weeks.

The European currencies registered the biggest losses – the euro, pound, and franc, as well as the Japanese yen, while commodity currencies posted minor changes.

This image is no longer relevant

The Federal Reserve meeting on Wednesday, May 1st, will be this week's main event. This should be a standard meeting with no forecasts, as the main focus will be on Fed Chief Jerome Powell's press conference. Powell is expected to adopt a more hawkish tone, confirming the consensus regarding a slower trajectory of interest rate cuts.

As of Monday morning, the markets anticipate only one rate in 2024. According to CME data, the futures market implies a quarter-point rate cut in September, with the next cut not until March 2025. This trajectory is smoother than what was assumed recently and generally favors higher yields, and consequently, the dollar.

This image is no longer relevant

An unpleasant surprise emerged last week as US GDP growth slowed to 1.6% in the first quarter, below the long-term trend and significantly lower than expectations. The ISM Manufacturing PMI will be released on Tuesday, and if it falls below the forecast of 50.1, which seems plausible, it will suggest that the economy is cooling and will reinforce the Fed's expectations regarding progress in slowing inflation.

Overall, the situation continues to favor a stronger dollar, reflected in yield dynamics. 10-year US Treasuries fell to 3.79% in December, reflecting market expectations of an imminent Fed rate cut, but in April, yields rose to 4.75%, persistently approaching the October peak of 5.02%.

There is no doubt that the US dollar is still the favored instrument in the currency market. Structural problems in the US economy, such as rapidly growing government debt and budget deficits, currently do not influence investor preferences—faith in a strong dollar outweighs any concerns.

Kuvat Raharjo,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump's Tax Plan to Increase U.S. Deficit by Nearly $3.3 Trillion

According to a new assessment by the nonpartisan Congressional Budget Office, the Senate's latest version of President Donald Trump's tax and spending package would increase the U.S. deficit by nearly

Jakub Novak 12:35 2025-06-30 UTC+2

Are There Still Chances for Trade Deals?

The euro, the pound, and other risk-sensitive assets continue to rise against the weakening U.S. dollar, although the possibility of a rebound in the dollar—as well as the conclusion

Jakub Novak 12:31 2025-06-30 UTC+2

Bitcoin outshines competitors

Expectations vs. reality Cryptocurrency creators once envisioned a universe where countless tokens could compete for investors' money. In reality, aside from Bitcoin and a handful of digital assets, the rest

Marek Petkovich 12:15 2025-06-30 UTC+2

US stock market fed up with "smart money"

The end of June brought a spectacular rally for the S&P 500. Not only did the broad stock index hit a new all-time high for the first time since February

Marek Petkovich 11:15 2025-06-30 UTC+2

Markets End the First Summer Month on a Positive Note (with a Likely Continuation of #USDX Decline and EUR/USD Growth)

The ceasefire between Iran and Israel is providing significant support for the growth in demand for risk assets, and expectations of negotiations between contact groups starting this week are further

Pati Gani 10:04 2025-06-30 UTC+2

What to Pay Attention to on June 30? A Breakdown of Fundamental Events for Beginners

There are only a few macroeconomic reports scheduled for Monday. Perhaps the most important is the final Q1 GDP report in the United Kingdom. Let us recall that the British

Paolo Greco 06:02 2025-06-30 UTC+2

GBP/USD Overview – June 30: Nonfarm Payrolls, Powell, and Unemployment

The GBP/USD currency pair rose by 300 pips over the past week and appears to be in no hurry to stop. Even on Friday, the price failed to initiate

Paolo Greco 03:37 2025-06-30 UTC+2

EUR/USD Overview – June 30: European Inflation and Another Round of Lagarde Speeches

The EUR/USD currency pair has been rising for five consecutive months. During this time, we've only seen a few minor downward corrections, each ending in another collapse of the U.S

Paolo Greco 03:37 2025-06-30 UTC+2

U.S. Dollar – Weekly Preview

The American news background will once again play a key role for the dollar and, therefore, for the market and the vast majority of instruments. This past week, only

Chin Zhao 00:34 2025-06-30 UTC+2

British Pound – Weekly Preview

The situation for the British pound in the market and news landscape is quite similar. For the pound, two rate cuts by the Bank of England in 2025 or zero

Chin Zhao 00:34 2025-06-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.