U.S. dollar net shorts hit largest since July 2021 -CFTC, Reuters data
The value of the net short dollar position hit $1.82 billion in the week ended Nov. 22 from a net short of $10.5 million in the previous week. Speculators have been net short the dollar for a second straight week.
Investors have flipped their net long dollar positions, anticipating weakness in the U.S. currency on expectations that the Federal Reserve will slow the pace of interest rates increases after raising them by 75 basis points multiple times.
Last week, the dollar fell another 0.9%. For the month of November, the dollar index has so far dropped about 4.3%, on track for its largest monthly fall since September 2010.
However, record COVID cases in China and citizens protesting against the country’s zero-COVID rules have increased safe-haven flows to the U.S. dollar.
“The (dollar index) has certainly shown some signs of life around its 200-day average and support in the…
