Institutional Investors Signal Bearish Outlook on US Dollar

Data from the Commodity Futures Trading Commission indicates a growing bearish sentiment among institutional investors toward the US dollar. Net positions held by asset managers have surged to $47 billion, approaching historical highs set in December 2023. This shift coincides with the greenback experiencing its worst performance against other currencies this year, dropping by 9.5% year-to-date. The euro, Swiss Franc, and Japanese Yen have gained significantly (+10.1%, +10.3%, and +8.5% respectively) against the US dollar.