Speculative Copper Shorts are Largest Since at Least 2002

Non-commercial traders remain the most net short British Pounds, Canadian Dollars, and copper that they’ve been in years.

Non-commercial traders remain the most net short British Pounds, Canadian Dollars, and copper that they’ve been in years.

Gold and silver selling is gaining momentum following reports of Cyprus’ liquidation while crude oil and copper are down after China’s disappointing GDP data.

Non-commercial (speculative) US Dollar net long positioning remains near a record (record was recorded one week prior). Speculators remain heavily short British Pounds, Canadian Dollars, and copper.

Instruments covered today: EUR/USD, AUD/USD & USD/CAD

The Dow Jones-FXCM U.S. Dollar tumbled lower on Tuesday, but the reserve currency may regain its footing ahead of the FOMC Minutes amid the shift in the policy outlook

Crude oil may rise while gold declines if US economic data continues to trump economists’ expectations. Copper struggles to find clear directional bearing.

Gold and silver prices have found interim support after yesterday’s selloff as traders look ahead to soft US CPI data. Crude oil and copper may follow suit.

The US Dollar punched through another level of chart resistance to hit the highest level since September 2010 while the S&P 500 has reversed sharply lower.

Crude oil is at risk despite buoyant risk appetite as US “sequester” spending cuts loom just over a week ahead. Copper has completed a bearish technical breakout.

Price action is very choppy today, as indicated by the tight range the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR ) has traded in.