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COT report: Broad commodities demand seen ahead of FOMC
The latest reporting week was dominated by positioning ahead of the FOMC rate decision. Dollar weakness set in as the market prepared for the Fed to restart its rate-cutting cycle, only for that move to be fully reversed after Wednesday’s announcement, when traders judged that forward expectations for additional cuts had already been priced in. Speculators responded to the pre-meeting dollar weakness with mixed adjustments, reflecting position-squaring before the event. The EUR and JPY – both recent favourites – saw net selling, while demand for CHF, AUD, and not least GBP partly offset those reductions. ... (full story)