Dollar Rebound Meets Diverging Forex Bets Amid Jackson Hole Commentary

The US dollar rebounded after hawkish comments from Federal Reserve Governor Christopher Waller at Jackson Hole, but positioning beneath the surface remains mixed according to the latest COT report.

Futures traders remained net-long in USD exposure by $26.3 billion ahead of the event, even as aggregate exposure fell by $8 billion.

Net shorts in EUR/USD declined among large specs, while asset managers increased their net longs, indicating a cautious shift towards buying euros.

In contrast, USD/JPY positioning diverged sharply between large speculators and asset managers, with the former increasing their net short exposure and the latter reducing theirs to a 16-week low.