News Digest:

Hedge funds have taken a bearish stance toward the dollar for the first time in a year, amassing a net short position on the U.S. currency versus a basket of eight leading peers last week, according to data from the Commodity Futures Trading Commission.

Takeaway:

The wager comes as the Bloomberg Dollar Spot Index has declined over 3% from an all-time high in July after posting a 14%-plus surge in the preceding 12 months, and signals hedge funds’ belief that the Federal Reserve could possibly soon peak out on its aggressive monetary tightening policy amid early signs of cooling U.S. inflation.

End Notes

Source: https://www.bloomberg.com/news/articles/2022-08-15/hedge-funds-flip-to-dollar-bears-on-bets-peak-of-rally-is-over