Steadfast USD long positions could see a key Fibo probe

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.

For more click on FXBUZ

Position Data Chart: https://tmsnrt.rs/3PyxIf9

Daily Chart: https://tmsnrt.rs/3DQvq8y

Policy Expectations Path Chart: https://tmsnrt.rs/4h58uAW

(Martin Miller is a Reuters market analyst. The views expressed are his own)

((martin.miller@thomsonreuters.com))