Shorting the Dollar Becomes a Very Crowded TradeBy
Being bearish the dollar is the second most crowded trade across markets, according to respondents in Bank of America Merrill Lynch Global Research’s August fund manager survey. The sentiment reflects just how much expectations for the greenback have shifted this year. From December to April, investors said being long the greenback was the single most overcrowded trade. Now, hedge funds and other large speculators are betting the dollar is poised for further declines, amassing the biggest net-short position in more than four years, CFTC data show.