Retail Trader Positioning 7th November – Intervention what intervention?

Pivotfarm's picture

FX traders are gearing up to test Jun Azumi’s resolve to keep intervening in currency markets to weaken the yen from its postwar high.

While Japan’s Finance Minister directed the central bank on Oct. 31 to sell what analysts estimate was about 8 trillion yen ($102 billion), sending it down as much as 4.7 percent against the dollar, the move failed to increase volatility. Traders avoid currencies with increasing price swings because they boost the odds of sudden losses.

The yen remains a favorite currency for Investment managers as Japan still has a strong trade surplus and benefits from the global risk aversion we are seeing. Based upon the evidence of past interventions its unlikely with the continuing tide of negativity washing over the world economy that traders will move out of the Yen any time soon.

It remains very much in our strong short zone with 70.91% of retail traders long.

Today’s Data & journal links

Data sheets describing major market metrics, news and a journal area for trading records in the centre of the pdf.

eurusdgbpusdusdjpys&p500nasdaqdow jonesgoldcrude oil

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Orly's picture

The GBPUSD pair has reached a point on the chart whereby it will naturally attempt to re-enter a long-term down channel.  The downside move from here could be fairly impressive.

I don't know if the Global CBs are ready for that to happen just yet, or even whether they have the power to do anything about all these balls in the air at once.  Either way, expect the pair to naturally try to tank with gyrations of an unnatural aspect thrown in just to make the home-gamers lose theiry shirts.

Watch the Cable and bet short.  Keep it high and tight.  It's going to be interesting.


boyplunger's picture

no strong long huh!