Traders Ditching Dollar Bets Miss Jump Ahead of Fed Meeting
- Speculators close bullish dollar bets ahead of Fed meeting
- Shorts are ‘cleanest way’ to position for dovish stance: Vanda
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Speculators who scrapped bullish bets on the dollar at the fastest pace in more than 18 months are now missing out on the currency’s gains ahead of a key Federal Reserve meeting this week.
Net-long aggregate speculative positions versus major peers have dropped the most since June 2020, according to the latest data from the Commodity Futures Trading Commission. It comes despite recent dollar gains in the run up to the Fed’s meeting Wednesday, when economists expect it to signal plans to start hiking interest rates in March and reducing its stockpile of bond holdings later this year to curb the surge in inflation.