Hedge funds are betting that the US Federal Reserve is nearing the end of its current programme of interest rate hikes and have swung to an overall bearish dollar position for the first time since March, according to a report by Bloomberg.
The report cites data from the CFTC as revealing that leveraged investors switched to a net short position on the US currency of 20,091 contracts in the week ending 7 July, having been long by a net 5,196 contracts in the previous week.
Bloomberg’s gauge of the dollar has dropped 1.6% this year on signs the Fed is nearing the end of its tightening cycle and as the rest of the world has caught up in raising rates to combat inflation.
