empty
03.03.2025 01:01 PM
CFTC Report: Investors Actively Closing Long Positions on USD

The CFTC report published on Friday revealed an unexpectedly strong impulse toward dollar sell-offs, with the total speculative long position on USD against major currencies shrinking by $8.2 billion to $15.4 billion.

This image is no longer relevant

The most significant shifts occurred in the yen and euro, with each currency adding more than $3 billion in positioning against the dollar. While such changes in the yen were anticipated, the sharp reduction in short positions on the euro—by nearly half—came as a surprise. Investors may be reacting to the potential de-escalation of geopolitical tensions in Europe following the successful U.S.-Russia negotiations in Riyadh. Regardless of the reasoning, the main takeaway is clear: the dollar is rapidly losing its bullish momentum.Expectations regarding Fed policy have also shifted. According to CME futures data, the market now anticipates three rate cuts this year, and the 10-year Treasury yield has fallen to a nearly three-month low, further weakening the dollar's appeal for bulls.

This image is no longer relevant

The market's response to Trump's initial policy moves has been somewhat unexpected. Instead of focusing on the risk of rising inflation—a widely discussed consequence of Trump's pro-inflationary economic policies—investors have suddenly shifted attention to the possibility of economic slowdown and an impending recession. As a result, expectations for Fed rate cuts have become more aggressive, suggesting that the market perceives inflationary risks as weakening rather than strengthening.

On the surface, the tariff war should benefit the U.S. economy. Treasury Secretary Scott Bessent, following Ukraine's delegation's visit to Washington, stated that tariffs are expected to generate substantial revenue for the U.S. budget, which is critical given the federal deficit projections. According to the Congressional Budget Committee, the 2025 federal deficit is projected at $1.9 trillion, potentially expanding to $2.7 trillion by 2035. Addressing this shortfall requires new borrowing, but rising national debt amid high interest rates only worsens the fiscal imbalance.

The new Trump administration aims to break this cycle by:

  • Cutting spending, primarily in the military sector
  • Increasing revenue through higher tariffs
  • Creating favorable conditions for business growth to boost corporate valuations and increase tax revenues

This strategy aligns with the rally in stock indices, which reflects confidence in the new economic policies.

The biggest threat to the U.S. dollar stems from reduced global tensions, which diminish demand for the dollar as a safe-haven asset, while simultaneously boosting risk appetite for equities and high-yield assets. These conditions favor a weaker dollar, making investors' reactions understandable. However, if the tariff war fails to deliver its intended economic benefits, other risks—such as rising inflation and economic stagnation—will become more pressing concerns. In this scenario, the stock market could also come under pressure, though it is too early to draw definitive conclusions.

Outlook for the S&P 500 and U.S. Economy

We maintain a bullish outlook on the S&P 500. While the dollar may weaken due to easing geopolitical tensions and renewed euro optimism, U.S. equity markets remain well-positioned for further gains. Historically, a weaker dollar supports stock market growth, a trend that has long been well-documented and fundamentally sound.

This image is no longer relevant

The risk of a U.S. recession has increased, but negative trends will only accelerate if economic weakness worsens rather than stabilizes. The Trump administration's approach focuses on creating an optimal business environment and revitalizing the U.S. industrial base, which should, in theory, support stock indices over time.

Last week, support for the S&P 500 was observed near the 5900 level, with the index briefly dipping below but remaining above the key technical threshold of 5760. We expect the rally to resume, with targets at 6200/6300, which remain the primary objectives for the near term.

Pilih carta masa
5
min
15
min
30
min
1
jam
4
jam
1
hari
1
minggu
Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN

Artikel yang dicadangkan

Euro Akan Terus Mengekalkan Kekuatan dan Menarik Minat Pelabur

Dalam ucapannya, Pengarah Urusan IMF, Kristalina Georgieva menyatakan bahawa beliau melihat potensi untuk euro memainkan peranan yang lebih luas di peringkat global. Kenyataan beliau dibuat ketika ketidaktentuan geopolitik semakin memuncak

Jakub Novak 11:27 2025-06-20 UTC+2

Donald Trump – Dalang Ketidakpastian Geopolitik (Potensi Pembetulan dalam Harga Minyak dan Emas)

Enam bulan selepas Donald Trump menjadi presiden, nampaknya beliau telah meletihkan dunia secara menyeluruh dengan inisiatif "cemerlang" beliau, tindakan pecah tanah yang bertujuan menjadikan Amerika hebat semula, dan penjelmaan jelas

Pati Gani 11:26 2025-06-20 UTC+2

Euro Naik Sedikit Selepas Ucapan Lagarde

Euro menyaksikan pemulihan sederhana selepas Presiden Bank Pusat Eropah Christine Lagarde menyatakan bahawa pengembangan perdagangan dalam rantau itu boleh membantu mengimbangi kerugian akibat pemecahan global. Kenyataan optimis beliau dibuat

Jakub Novak 11:22 2025-06-20 UTC+2

Gambaran Keseluruhan GBP/USD – 19 Jun: Inflasi UK dan Mesyuarat Bank of England

Pasangan mata wang GBP/USD didagangkan secara relatif tenang pada hari Rabu, meskipun sehari sebelumnya ia mencatatkan kejatuhan ketara pada separuh kedua sesi—melebihi 100 pip. Seperti yang telah dinyatakan sebelum

Paolo Greco 11:21 2025-06-20 UTC+2

Gambaran Keseluruhan GBP/USD – 20 Jun: Bank of England Tidak Mengejutkan

Pasangan mata wang GBP/USD didagangkan dengan agak tenang pada hari Khamis, memandangkan latar belakang fundamental yang tersedia untuk pasaran. Pada petang Rabu, Rizab Persekutuan mengumumkan keputusan mesyuarat terbarunya, yang boleh

Paolo Greco 10:59 2025-06-20 UTC+2

Perang Iran-Israel Belum Memberi Kesan Negatif Ketara ke atas Pasaran (Risiko Penurunan Terhad bagi Emas dan Daya Lonjakan Masih Mungkin untuk #USDX)

Seperti yang dijangkakan, bank pusat Amerika Syarikat mengekalkan semua parameter utama dasar monetari tanpa perubahan, sambil sekali lagi memetik ketidaktentuan yang berterusan mengenai keadaan masa depan ekonomi negara—faktor yang menjadi

Pati Gani 10:47 2025-06-20 UTC+2

Fed Kekal dengan Pendirian Sebelumnya

Dolar AS memberi reaksi dengan mencatatkan kenaikan, manakala aset berisiko seperti euro dan pound mengalami penurunan. Susulan mesyuarat semalam, pegawai Rizab Persekutuan menyatakan bahawa mereka menjangkakan dua kali pemotongan kadar

Jakub Novak 10:08 2025-06-20 UTC+2

Gambaran Keseluruhan EUR/USD – 19 Jun: Trump Terus Membuat Keajaiban

Pasangan mata wang EUR/USD didagangkan dengan lebih tenang pada hari Rabu berbanding hari sebelumnya. Bagaimanapun, pergerakan ketara hari sebelumnya juga bermula lebih dekat ke petang. Ia tidak berkaitan dengan latar

Paolo Greco 10:00 2025-06-20 UTC+2

Apakah yang Perlu Diberikan Perhatian pada 20 Jun? Pecahan Acara Asas kepada Pedagang Baharu

Analisis Laporan Makroekonomi: Hanya sedikit laporan makroekonomi yang dijadualkan untuk hari Jumaat. Satu-satunya laporan yang akan diterbitkan ialah laporan jualan runcit UK. Tiada data ekonomi akan dikeluarkan hari

Paolo Greco 09:22 2025-06-20 UTC+2
Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget
 

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.