Skip to content

US Dollar Shorts Become Favorite Trade as Fed Seen Slowing Hikes

  • Buy dollar trade is swiftly turning into top macro short: CIBC
  • China’s reopening optimism fuels gains in commodity currencies
Bloomberg business news
2023 Will Be Harder Than 2022: Hornbach
Updated on

The dollar’s rally from an eight-month low could be fleeting as the growing view that the Federal Reserve will slow the pace of interest-rate hikes is likely to keep selling pressure on the US currency.

The Bloomberg Dollar Spot Index made slight gains on Monday, but remains down nearly 2% since the start of the year as investors have sold the greenback in droves. Easing US inflation expectations has prompted funds to ditch the ultimate haven asset, triggering a rebound in most major currencies.