Nov 18 (Reuters) - Steady speculative long dollar positions seem to be in good shape and could enjoy bigger gains in the days and weeks ahead.
The speculative long position - derived from net contracts of International Monetary Market speculators in the euro, yen, pound, Swiss franc, Canadian and Australian dollars - fell only slightly. For the week ending Nov. 12, the value of net positions held by speculators dropped marginally to $17.54 billion long from $17.89 billion a week earlier.
The dollar made big gains last week, as markets reassessed expectations of future interest rate cuts and with the view that President-elect Donald Trump's policies could be inflationary.
The USD index, which tracks the dollar against a basket of six major currencies, is focused on 2023 107.34 peak, a sustained break above which would unmask the 108.962 Fibo: a 76.4% retrace of the 114.78 to 99.549 (2022 to 2023) drop.
Fourteen-week momentum reading on the USD index chart remains positive, reinforcing the underlying bullish market structure.
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(Martin Miller is a Reuters market analyst. The views expressed are his own, editing by Ed Osmond)
((martin.miller@thomsonreuters.com))
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