US Dollar Bulls Surge as Euro and Pound Shorts Build

US dollar bulls have returned to the market in force, with net-long exposure rising by $12.5 billion to $17.3 billion, the fastest weekly increase in seven years.

This surge in bullish bets on the US dollar comes as futures traders increased bearish exposure to both the euro and British pound, according to the latest COT report.

The US dollar index has rallied 2.6% in 11 days, with a further increase expected by the time the next COT report drops.

Traders have been increasing their short positions on the euro and pound, with net-short exposure rising to a five-week high among large speculators for EUR/USD futures.

The British pound is heading towards its range lows around 1.3150, according to bearish momentum accelerating towards the June low.