DailyFX: FX Options Point to USD Losses, But Reversal Risk High

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DailyFX Forex Options Weekly: USD Headed Lower, but Reversal Risk High Forex futures and options positioning shows that large speculators remain heavily net-long the US Dollar (ticker: USDOLLAR), warning that a continued correction in positioning could force further USD losses.   As of the most recent CFTC Commitment of Traders report, Non-commercial traders remained near their most bullish the US Dollar against the Euro since the EURUSD set a significant bottom near 1.20 in 2010. A subsequent rally suggests many covered their shorts, but positioning remains quite extreme and we see further scope for EURUSD short covering.   There's considerable uncertainty surrounding major pairs, but overall positioning and sentiment suggests that the US Dollar may continue to trade lower.   Download the Full Article Best regards, David Rodríguez, Quantitative Strategist drodriguez@dailyfx.com DailyFX Home | research@dailyfx.com | Contact US ©2009 DailyFX. All Rights Reserved. Forex Capital Markets, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. Forex Capital Markets, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Forex Capital Markets, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.

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