DOLLAR INDEX AT EIGHT WEEK HIGH; COT REPORT INDICATES FURTHER FALL IN SPECULATIVE NET LONGS

Published on Feb 05, 2024 11:18

The dollar index is extending Friday�s surge to early trades on Monday and hovering at its highest level in eight weeks around 104 mark. The greenback strengthened following US jobs data that came in better than expected and further reduced bets of a near term Federal rate cut. US Nonfarm Payrolls surged to 353K in January from an upwardly revised 333K in December. The Unemployment Rate was unchanged at 3.7%. The dollar index added massive gains following the report and climbed above 104 mark for the first time in eight weeks and is currently quoting near the levels at 103.93. Meanwhile, net long positions by large currency market speculators in the US dollar futures continued to edge lower, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of US dollar index futures, traded by large speculators and hedge funds, registered a weekly drop of 372 net contracts in the data reported through January 30, 2024, lingering at its lowest level in around two and half years.