Traders are back buying the buck, but how long will it last?
Currency traders are gradually returning to the US dollar, perhaps encouraged by recent declines which saw the US dollar index fall the lowest level since last November’s US presidential election last week.
However, whether that buying interest will continue remains an unanswered question.
According to new research from ANZ, citing information from the latest Commitment of Traders report released by the US Commodity Futures Trading Commission (CFTC), traders bought a net $US2.9 billion (£2.23 billion) last week — the second increase in a row — taking their overall net long position to $US16.5 billion (£12.70 billion).
Net positioning is simply the sum of long futures and option positions less short positions in a particular asset class.