Dollar Bulls Retreat Ahead of Hawkish Rate Hike

The latest Commitment of Traders (COT) report shows that dollar bulls retreated ahead of the Federal Reserve's hawkish rate hike, slashing their gross dollar long by 70% to a 15-month low of $5.9 billion.

This reduction was driven not only by yen buying but also short covering in the euro and Canadian dollar, where speculators bought back 33k contracts worth around $2.4 billion.

In commodities, hedge funds responded relatively cautiously to the energy sector's 9.4% surge, with some fresh buying of Brent crude while net selling was seen in RBOB gasoline and ULSD contracts.