Jan 14 (Reuters) - Speculative dollar long positions have continued to grow, highlighting expectations the greenback could make even bigger gains and eventually probe a long-term Fibo at 111.185.
The speculative long position - derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars - has risen to its highest level since April. For the week ending Jan. 7, the value of net positions held by speculators climbed to $30.96 billion long from $29.20 billion a week earlier.
The USD index, which tracks the greenback against a basket of six major currencies, remains on course to probe the major 111.185 Fibo, a 76.4% retrace of the 114.78 to 99.549 (2022 to 2023) drop. A daily close above this level would unmask the 2022 114.780 peak. Note the 14-day momentum reading has been positive since mid-December.
The dollar hovered near its highest level in more than two years on Tuesday as traders scale back wagers on U.S. rate cuts in 2025 after strong economic data.
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(Martin Miller is a Reuters market analyst. The views expressed are his own)
((martin.miller@thomsonreuters.com))
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