Is it Time for Commodity Currencies to Shine?As Trump announced tariffs on Canada and Mexico, which was bullish the USD, the CAD closed the day green as Commercial traders are net-long while Speculators are increasing their short position. Will fading this crowded trade (not max crowded yet) end up being one of the better trades during the first quarter of 2025? This is also not the only currency set up that way. Other commodity currencies include the AUD and NZD.
These three currencies are where Speculators are most short. Now we wait for the market to confirm the long trade with a news failure.
For new followers, the CMR process is to wait for Speculators (both small and large) to become extremely crowded and then fade their trade after a news failure in the market confirms the trade. You want to be on the same side as Commercials when the market turns.
Thanks,
Jason