Dollar Bulls Return in Force, Fuelled by Euro and Pound Shorts

The US dollar saw a significant surge in bullish bets last week, with net-long exposure increasing by $12.5 billion to $17.3 billion, the fastest weekly rise in seven years.

This rally was driven by futures traders increasing bearish exposure to both the euro and British pound as the dollar's momentum gathered pace.

The US dollar index has now rallied 2.6% in 11 days, with neither the dollar index nor net-long exposure near a sentiment extreme.

Fed members are set to speak this week, alongside key economic indicators such as ISM, NFP and PCE inflation, which could further fuel the dollar's rally.