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Module 04

FX Research Desk

Direct + cross pair coverage · COT positioning · central-bank state · rate differentials · gate-based deployment discipline.

Broad USD index

Index Jan 2006=100
119.28
+0.2% YoY · 36 obs

US 10y / 2y curve

10y - 2y
+0.49%
10y 4.57% · 2y 4.08%

Fed - ECB differential

Policy rate gap (Fed upper − ECB DFR)
+1.75%
Fed 3.75% · ECB 2.00%

USD/CNY · WTI

USD/CNY
6.8092
WTI 112.3 USD/bbl

Central bank state — policy cycle & bias8

BankCurrencyPolicy rateCycleBias
FedUSD3.75%holdingHigher-for-longer rhetoric; SOFR pinned to target range.
ECBEUR2.00%cuttingDisinflation progress allowing a measured cutting path.
BoEGBPholdingSticky UK services inflation keeps the MPC patient.
BoJJPYhikingPolicy-normalization track; intervention risk on weak yen.
BoCCADcuttingDisinflation on track; data-dependent on labor.
RBAAUDholdingSticky services and tight labor keep policy on hold.
RBNZNZDcuttingSoft growth allowing the easing cycle.
SNBCHFneutralSight-deposit policy + safe-haven flows define the franc.

Direct pairs (vs USD)7

PairBiasCOT gateTech gateStatusFundamental note
AUD/USD
short
shortredambernot readyRelative growth, trade flow, and carry unwind keep the fundamental bias short AUD/USD.
EUR/USD
watch
watchamberamberpartialDollar relative strength is still relevant, but entry timing needs macro confirmation.
GBP/USD
watch
watchamberamberpartialSticky UK inflation against a firm dollar leaves the pair two-sided pending data.
NZD/USD
watch
watchgreenamberpartialSoft NZ growth and dairy terms-of-trade vs a firm USD; range-bound pending RBNZ.
USD/CAD
watch
watchamberamberpartialEnergy terms-of-trade and rate spreads frame a range; no directional edge yet.
USD/CHF
watch
watchgreenamberpartialSNB sight-deposit policy and safe-haven flows dominate; watch the SNB statement track.
USD/JPY
watch
watchredambernot readyPolicy-normalization risk in Japan caps the carry; watch for intervention zones.

Cross pairs (no USD leg)12

PairBiasCOT gateTech gateStatusFundamental note
AUD/JPY
watch
watchredambernot readyClassic risk-on tape; commodity tape and BoJ policy define direction together.
AUD/NZD
watch
watchredambernot readyAntipodean policy gap drives directional moves; mean-reverting on commodity correlation.
CAD/JPY
watch
watchredambernot readyEnergy-vs-yield cross; tracks WTI and BoJ rhetoric jointly.
CHF/JPY
watch
watchredambernot readySafe-haven differential; flows-driven more than yield-driven.
EUR/AUD
watch
watchredambernot readyReserve-currency vs commodity beta; reads as risk-off proxy when AUD softens.
EUR/CAD
watch
watchamberamberpartialReserve vs energy beta; correlated with risk-on / commodity tape.
EUR/CHF
watch
watchamberamberpartialSNB tolerates a stronger franc on safe-haven flows; ECB cutting cycle frames a range.
EUR/GBP
watch
watchamberamberpartialECB-BoE policy gap and UK services inflation define the range; both sides intervene with rhetoric.
EUR/JPY
watch
watchredambernot readyReads as risk-on proxy; widening ECB-BoJ differential keeps a structural bid, intervention caps the top.
GBP/AUD
watch
watchredambernot readyUK rate path vs Australian commodity tape; trades wider than EUR/AUD.
GBP/JPY
watch
watchredambernot readyHighest-vol yen cross — carry-friendly but exposed to BoJ policy surprises.
NZD/JPY
watch
watchredambernot readyCarry-sensitive cross; RBNZ-BoJ rate gap is the structural driver.

COT positioning — net non-commercial · percentile bar7

CurrencyNet non-commercial1y percentile (short ← 50 → long)Report date
AUD
Australian Dollar
85,644
100
May 19, 2026
CAD
Canadian Dollar
-31,231
80
May 19, 2026
CHF
Swiss Franc
-36,937
27
May 19, 2026
EUR
Euro
33,513
13
May 19, 2026
GBP
British Pound
-64,307
16
May 19, 2026
JPY
Japanese Yen
-93,905
5
May 19, 2026
NZD
New Zealand Dollar
-40,613
30
May 19, 2026
The FX desk outputs research, gate status, and risk-plan drafts only — never trade signals or orders. COT positioning is sourced from the CFTC public reporting API; rate differentials come from FRED daily series. Cross-rate biases combine BOTH legs' positioning conservatively (red wins).