USD/JPY Dips Below 100, Adds To Nikkei Volatility

BAML has reported record high bullish positions in the USD index recorded as of last Tuesday. Long contracts from investors on US rose to $42.6 billion from $40.8 the previous week, breaking multi year records. Despite being in a crowded bull market, the USD  declined today against major currencies, with the  USD/JPY hitting an unwelcome milestone.

The trigger for the frenzied sell off in U.S Dollar Index seems to be the unexpected contraction in US manufacturing data. May data from  Institute of Supply Management (ISM) showed that manufacturing activity fell from 50.7 percent in April to 49 percent in last month, missing economists’ expectations of 50 percent.

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