CFTC CoT Shows Dollar Shorts Rose Last Week

The dollar index, which measures the greenback against six rival currencies, fell to a three-year low of 90.934 on Friday. The index ended 2017 down nearly 10 percent, its worst annual showing since 2003.

Concerns about economic growth and political stability have hurt the U.S. dollar and continue to weigh on its outlook, Alfonso Esparza, senior currency analyst at OANDA in Toronto, said.

Investors are also paying close attention to the inflation scenario, which so far has been lackluster, Esparza said.

The U.S. central bank’s preferred inflation measure, the personal consumption expenditures price index excluding food and energy, has missed its target since May 2012.

The net long position in the euro grew to 144,691 contracts, a fresh record, the data showed.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the nagribahFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.