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Crowded Dollar Trades Face Reckoning With Funds Cutting Losses

  • Reversal of bearish bets fueled greenback’s rise in 2013, 2018
  • Greenback shorts a ‘massive pain trade’ for markets, AMP says
Updated on

The dollar’s unexpected march could close one of the most-crowded macro trades of 2021, and the end may be brutal.

Shorting the dollar was a popular Wall Street call, but back-to-back monthly gains is proving painful. Net speculative short positions has dropped by almost $6 billion by one gauge based on data compiled from the Commodity Futures Trading Commission, leaving nearly $25 billion on the table.