Dollar Longs Plummet as Yen Shorts Slashed in Latest COT Report

US dollar futures positioning saw a significant shift last week as net-long exposure plummeted by $12.5 billion to $35.9 billion, its fastest reduction in nearly two years. This decline came despite the US dollar index only falling 0.4% and continuing to hold above support.

The sharp reduction in net-long exposure suggests that some investors may have become overly bullish on the dollar, leading to a correction. However, with the dollar still holding above key support levels, it's unclear if this decline will continue.

Others assets also saw significant shifts in positioning last week, including the euro and yen. Large speculators reduced their net-short exposure to euro futures by 14.4k contracts, while yen bears slashed gross shorts by a combined 110k contracts.