The long US Dollar trade is crowded.
Long speculative positioning in the US Dollar is up to +$48 billion, the highest since 2015. This represents positions taken by hedge funds and asset managers based on directional market views rather than underlying hedging needs. Bullish positioning has more than QUADRUPLED over the last 3 months. As a result, long bets are now more than 2 standard deviations above the average since 2012. Professional investors are on track for a 6th consecutive month of long US Dollar exposure, the longest streak since 2022. Market participants are betting heavily on the US Dollar.
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