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Dollar Jump Catches Traders Short in One More Currency Calamity

  • Parker index of currency-fund returns little changed in 2016
  • `Consensus trades' are going wrong: Manulife Asset Management
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Fed, Bond Markets Face Off Over Interest Rates

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Just when investors thought they’d finally made a good call in the currency market, the dollar’s advance messed it up.

The U.S. currency on Friday capped its best week all year versus its major peers, shortly after hedge funds finally switched to betting on dollar declines, known as going short. That’s not the only wrong move foreign-exchange managers have made this year -- an index tracking their returns shows they’ve failed to turn a profit in 2016.