KC (111.40 +.95) started the week with a bounce after trading to the highest level (113.40) since the 11th of July on the back of a constructive COT report and weaker dollar which proved supportive to the commodity sector. The dollar softened amidst growing expectations that central banks outside the U.S. will be less accommodating as prospects for growth improve and the Commerce Secretary reminded traders that US-China trade issues remain yet to be resolved. The COT report was bullish at face value, as the non- commercial gross and net short for a 4th week running reached another record. Whether today’s bounce was courtesy the COT report or due more to the weaker dollar, the days pattern suggests more credit is due to the greenback, as the market opened up trading lower on the day and captured a more aggressive bid as currency markets traded in earnest. Short term systems stops were triggered through the prior week’s descending highs and Brazil was noted taking advantage of the best intraday bounce since the 6th of July. Robusta traded a virtual triple bottom at 1647-48, and, while it bounced $23, it also backed off to settle plus $7 at 1660 basis the September contract.
Write something about yourself. No need to be fancy, just an overview.