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For Traders from Club iNSIDER:What the COT report shows for G10 currencies: The risk of a correction in the dollar remains minimal

Post Views: 314 Yen optimism fades, but pound and New Zealand dollar pessimism remains Our synthetic index tracking the US dollar saw increased optimism for the dollar in November, coinciding with a broad strengthening in the spot dollar. Yen pessimism was partially dismissed, but statistically exaggerated optimism for the pound and New Zealand dollar may warrant short-term caution. A position is considered statistically overweight if its Z-score is higher or lower than plus or minus 2, or more than two standard deviations from the previous 13-week average. DXY Positions Diverge from Broad Dollar Strength Somewhat counterintuitively, the dollar index (DXY) does not capture the entire currency market, which can sometimes cause discrepancies between positioning changes and spot market movements. Non-commercial…

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