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USD Corrective Mood Prevails – TD Securities

FXStreet (Barcelona) - The FX Research Team at TD Securities see USD retaining a corrective feel after Friday’s price action saw the dollar slip back on what was only a mildly disappointing non-farm payroll report.

Key Quotes

“We think the overhang of long USD positions—Friday’s CFTC data showed a new record, aggregate long position of more than USD45 bn versus the major currencies has been built up by speculative accounts—is weighing on the USD’s progress. “

“In the absence of any major data releases—new information for the markets—until the latter part of the week, the USD may range with a modest downside bias.”

“We think the overall trend remains higher however, and EURUSD gains are unlikely to extend much beyond the 1.26 area.”