Reported 5 months ago
Bullish sentiment on the dollar is fading as signs show the US economy is cooling, leading to a group of investors holding a net short position for the first time in six weeks. While leveraged funds retained some bullish wagers on the dollar, asset managers increased net dollar shorts, resulting in a net short position of $5.36 billion as of May 21. The cooling US monthly inflation data and stagnant retail sales in April have raised expectations for Federal Reserve interest rate cuts, with investors awaiting signals from the upcoming personal consumption expenditures report. As the US dollar weakened against most G-10 peers between May 14 and May 21, the overall dollar position shifted, indicating a possible shift towards a bearish outlook on the US dollar.
Source: YAHOO