Forex
Dollar Rebound Meets Diverging Forex Bets Ahead of Jackson Hole
US dollar futures traders remained net-long ahead of Jackson Hole, despite a $8 billion drop in aggregate exposure to $26.3 billion.
This was evident even after Warsh's hawkish speech drove a rebound in the US dollar, putting pressure on major FX pairs.
However, positioning beneath the surface remains mixed. Euro longs had begun to recover, yen positioning diverged sharply between large speculators and asset managers, while AUD, NZD, and CAD futures showed different shifts in exposure.
The recent ISM and NFP reports could determine whether the US dollar rebound continues or begins to fade.