Asset Managers Ramped Up Bearish US Dollar Bets at the Wrong Time
- Funds increased net short dollar positions for a sixth week
- US currency may still prove to be ‘safest haven,’ Goldman says
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Asset managers added to wagers that the dollar will fall just before stronger-than-expected US jobs data catapulted the greenback to a one-month high.
Funds boosted their net short dollar positions for a sixth-straight week, the longest streak since 2022, according to data from the Commodity Futures Trading Commission compiled by Bloomberg. US payroll growth exceeded all economists’ estimates in May, a government report showed Friday, sparking a stampede for the greenback as traders pushed back expectations for when the Federal Reserve will cut interest rates.