Forex
US Dollar Bulls Return with Record Weekly Gain as Euro and Pound Shorts Rise
According to the latest COT report from FOREX.com, US dollar bulls are back in force. The net-long exposure for the US dollar rose by $12.5 billion to $17.3 billion last week, which is the fastest weekly increase in seven years.
The rally of the US dollar index has picked up momentum, rising 2.6% over the past 11 days. While some might be tempted to call an end to this rally after a brief pullback on Friday, sentiment is not yet at extremes.
Looking ahead to the week's economic data releases, including ISM and NFP figures, market participants are expecting a strong economy with inflationary pressures. This could further boost hawkish Fed comments, which would be supportive of the US dollar rally.