Forex
Dollar Bulls Extend Grip on Market as Yen Bears Pile In
US dollar bulls have tightened their grip on the market as the dollar continues to rally. The latest Commitment of Traders (COT) report shows that net-long exposure has climbed to a fresh 10-year high of $42.6 billion, up by $4.1 billion from last week.
The US dollar's strength is particularly evident in its index futures, which are now in a solid uptrend and could be on track to test 102 if the Fed strikes a hawkish tone this week.
Meanwhile, traders have continued to bet against the Japanese yen, with net-short exposure rising to near a two-year high. This trend is expected to continue, particularly if US CPI surprises to the upside or Middle East tensions remain elevated.