The Nightmare Of The Dollar Will Continue For Some Time.

The dollar at the moment is like a "drowning dog". Everyone wants to "step on the foot" at the time of "disaster".

Data released by the US Commodity Futures Trading Commission (CFTC) last Friday (February 12th) showed that in February 9th, foreign currency speculators cut their US dollar long bets for seventh weeks in a row, resulting in a net multi position decline to the lowest level since mid July 2014.

In the week of February 9th, the net stock value of US dollar was reduced to US $12 billion 600 million, which is a second week net multi position less than US $20 billion.

The net dollar in the week before was $18 billion 200 million.

Data also showed that in February 9th, the ICE dollar index decreased by 9859 to 35013 in the week.

Among them, speculative stocks dropped by 4052 to 50735, and speculative shorts increased by 5807 to 15722.

The total position of the International Monetary Market in Chicago is calculated on the basis of its net positions in the six main currencies: Japanese yen, euro, pound, Swiss franc, Canadian dollar and Australian dollar.

Various assets are aggravated due to global stock market crash and oil price slump.

This may further tighten the FED policy, and this year the outlook for the US dollar is going down.

The ICE dollar index has fallen 2.7% this year, up 12.18% in 2014 and 9.3% in 2015.

Kathy Lien, chief foreign currency analyst at BK Asset Management, said: "the main reason why investors sell dollars is that they no longer believe that the Federal Reserve will raise interest rates in 2016.

Interestingly, Yellen's testimony in the past two days did not imply any comment.

However, the US federal reserve fund interest rate futures are no longer expected to raise interest rates this year to verify the decline of the US dollar.

Speculators also cut their Euro clearance positions to the lowest level in third weeks in October.

In February 9th, the euro was 63314 bulls, compared with 87073 in one week.

The overall weakness also made the European Central Bank feel "restless" in anticipation of the depreciation of the euro.

When the European Central Bank adopted large-scale quantitative easing (QE), the euro / dollar rose 3.6% this year.

Although Federal Reserve Chairman Yellen (Janet Yellen) insists

Position, but last week when she testified in Congress, she also had to admit that the global economic downturn and deep stock market deflation accelerated the pace of tightening of financial conditions beyond the expectations of the Fed. This statement led to a sharp cooling down of expectations of US interest rate hikes, which led the dollar to tumbled against major currencies this week.

Speculation about a possible negative interest rate policy by the Fed has also led to a setback in the US dollar.

Yellen said last Thursday that after some European central banks lowered the cost of borrowing to a negative value, the Federal Reserve is also reviewing the negative interest rate as a potential policy tool once the US economy stalls.