US Dollar May Have Set Bottom versus Canadian Dollar, British Pound
Traders have moved to sell the Greenback aggressively against the Canadian Dollar and short positions are 85 percent above where they were last week. USD short positions against the British Pound (GBPUSD longs) are a similar 54 percent higher through the same stretch, and we increasingly see contrarian signal the US Dollar could continue its bounce.
Recent rallies could be the start of a larger correction—especially as the Dow Jones FXCM Dollar index may have set an important bottom through recent price action.
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