Institutional investors have reduced bullish US Dollar positioning to a 6-month low of $5B amid Fed rate hikes and currency volatility.
Macro & Markets ·
Speculative positioning in the US Dollar dropped $15 billion to reach +$5 billion for the week ending September 15th, marking the lowest level since March and the seventh straight weekly decline. The retreat in bullish bets from hedge funds, speculative traders, and asset managers contrasts sharply with mid-July peaks near $50 billion. Despite the pullback in positioning, the US Dollar Index gained 1.4% last week, its largest weekly advance since May 2026, following the Fed's first rate increase since July 2023, creating conditions of extreme volatility.