FX positioning: The peak of USD shorts?
USD net-shorts at fresh highs despite good spot momentum Positioning data ending 12 January from Commodity Futures Trading Commission (CFTC) display a sharp increase in USD net-shorts in the last reported week. The aggregate dollar net positioning versus reported G10 currencies (i.e. G9 excluding SEK and NOK) dropped from -16% to -19% of open interest, edging below the multi-year lows of -18% seen last September. Quite surprisingly, this plunge into record oversold territory coincided with a pause in the dollar decline: the US dollar index (DXY) rose by 0.7% in ...
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