🧮Hedge Funds' Dollar Net Short Flags Overextended: Cable FX Macro
- Rosbel Durán
- Sep 29, 2024
- 1 min read
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The latest CFTC data showed hedge funds extending the bearish dollar position. Our calculation of the leveraged fund's dollar position showed the net short reaching 30K contracts, the largest net short since July 2021
Last week's positioning data is now screening 'extended' net short for the dollar. Hedge fund's % of open interest in the greenback dropped the most, as shown in the lower left chart. The last reading, at -1.8%, it is below the 5-yr average and the 1-standard deviation band
Hedge funds stand most bullish on the kiwi and sterling, both net longs were built last week. However, upside may be limited from here, the % of OI in GBP positioning is close to its 5-year high and above the 1-standard deviation band
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