The Robots Have Dropped Their Dollar Short – For Now

  • CTA positions are dollar neutral after large shorts: Bridgeton
  • Quant buying power to boost greenback likely “exhausted”
Why BofA's David Woo Is So Bullish on the U.S. Dollar
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For clues on whether the dollar’s uptrend still has juice, look to the robots.

Automated trend-followers, known as commodity trading advisers, have flipped to neutral from a big short position on the greenback in recent weeks, a shift that helped accelerate the currency’s surprise advance. Now they’ve blown through all their stop-losses, and it could spell bad news for bulls from here.