HedgeFund­sDitchDol­larasTrumpTradeCap­sizes

Man­agers are cut­ting net bullish bets on dol­lar, un­wind­ing the Trump Trade that had lifted the green­back

The Economic Times - - Finance & Commodities -

The fast money is mak­ing a quick get­away. Hedge funds and other money man­agers cut net bullish bets on the US dol­lar to the low­est since Novem­ber, un­wind­ing the Trump Trade that had lifted the green­back since the pres­i­den­tial elec­tion. It was ul­ti­mately Don­ald Trump and ad­min­is­tra­tion of­fi­cials who killed the trade, by ar­gu­ing that the dol­lar is too strong, while ac­cus­ing big trad­ing part­ners in­clud­ing China, Ja­pan and Ger­many of de­valu­ing their cur­ren­cies.

Bets that the dol­lar will rise out­num­bered bear­ish wa­gers by 231,658 in the week ended Jan 31, the low­est since Nov 15, ac­cord­ing to data from the Com­mod­ity Fu­tures Trad­ing Com­mis­sion re­leased on Fri­day. The cuts co­in­cide with a six-week slide in the green­back that’s wiped out more than half its gain since the elec­tion. The Bloomberg Dol­lar Spot In­dex, which tracks the green­back against 10 ma­jor peers, fell 1.2% last week.

Only time will tell what will be the cat­a­lyst for the dol­lar this week. - Bloomberg

TRUMP TRADE RE­TREATS

Bloomberg Dol­lar Spot In­dex

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