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Dollar overextended – faces event risks this week - MarketPulse

FXStreet (Barcelona) - Dean Popplewell, Director of Currency Analysis and Research at MarketPulse, sees the overextended U. S dollar long positions remaining under pressure on this Monday morning, mostly in the wake of the slightly disappointing non-farm-payroll print last Friday.

Key Quotes

“Friday’s post payrolls saw US 10’s yields finish the week near they lows (+2.29%) and provide good enough reason for investors to lock in profits on USD longs”

“Despite the dollar squeeze lower, the overall market trend remains intact – bullish on the “mighty” buck – with many sideliners preferring to fade U.S short-term weakness.”

“However, be aware this market has the potential for further immediate risks, particularly for one or two currencies like USD/JPY to sub-¥113.00 and Aussie to $0.8765 mostly on the back of these lower U.S yields.”

“The surprise, gold remains better bid this morning, above $1,171 after rising by its biggest margin since June 18th on Friday.”

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