IMMs: US dollar shorts cut aggressively, but still near historic lows
The US Commodity Futures Trading Commission’s latest Commitments of Traders report has shown an aggressive pruning of short US dollar positions, based on International Money Market data.
This mirrors a rebound in the US dollar last week. However, data for the week May 3-May 10 also confirms that investors still remain overwhelmingly bearish on the dollar. Net short dollar positions are still at record lows versus a global basket of currencies (see graph).
Dollar shorts were cut savagely, but that still leaves short positioning “excessive” and the dollar near historic lows, said RBC Capital Markets in a research note dated May 13. USD net shorts tumbled....