Highlights and themes
- Despite the stronger inflation data and rates spiking higher the US Dollar backed off from the CPI report to the end of the week. It could be due to the Yen weakness had the BoJ jawbone or perhaps do a little intervention to strengthen it as it has been moving lower for weeks. It’s hard to tell if the BoJ actually does some intervention unlike times in the past.
- The US Dollar did break higher and backed off and remains in a pattern that could see further gains. Both Euro and Pound held the recent support lows although if those break then the Dollar will be moving at more rapid pace.
- Yen weakness continues to be a macro risk reflected with US rates.
- Crypto spiked higher with some of the speculative action in the equity markets but both Bitcoin and Ethereum have DeMark sell Setup 9’s in play and could see pullbacks. Both are in upside wave 5 with Bitcoin sentiment hitting a multi year high and pulling back so I’m not sure if that is all there is going to be with crypto for now.
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Currency Sentiment Overview
Currency sentiment highlights
US Dollar Indexes
DXY US Dollar Index daily
Bloomberg US Dollar Index daily
Bloomberg US Dollar Index weekly
US Dollar bullish sentiment
US Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
Major USD Crosses
EURUSD Euro / US Dollar
Euro bullish sentiment
Euro Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
GBPUSD British Pound Sterling / US Dollar
British Pound Sterling bullish sentiment
British Pound Sterling Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
AUDUSD Australian Dollar / US Dollar
Australian Dollar bullish sentiment
Australian Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDCAD US Dollar / Canadian Dollar
Canadian Dollar bullish sentiment
Canadian Dollar Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDCHF US Dollar / Swiss Franc
Swiss Franc bullish sentiment
Swiss Franc Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDJPY Japanese Yen daily still has risk if 151-152 breaks.
Japanese Yen bullish sentiment
Yen Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
Crypto
Bitcoin daily could pullback after DeMark sell Setup 9. It’s extended while in upside wave 5 of 5.
Bitcoin bullish sentiment pulled back late in the week
Ethereum also could stall with recent sell Setup 9.
Three major Yen crosses
With Yen weakness these three crosses still have breakout potential.
EURJPY Euro / Japanese Yen
GBPJPY British Pound Sterling / Japanese Yen
AUDJPY Australian Dollar / Japanese Yen
US Dollar vs Emerging Markets
USDBRL US Dollar / Brazilian Real
USDMXN US Dollar / Mexican Peso
Mexican Peso bullish sentiment
Mexican Peso Commitment of Traders large speculators and weekly DeMark Setup, Sequential, and Combo indicators
USDZAR US Dollar / South African Rand
USDCNH US Dollar / Chinese Offshore Renminbi (Yuan)
DeMark Sequential Basics from Bloomberg
Detailed Commitment of Traders explanation
