US Dollar Longs Slowly Unwind as Traders Hold On

The US dollar's net-long exposure has been decreasing, but at a slower pace than expected. According to the COT report, the net-long exposure is now $34.3 billion, just $14.2 billion below its 11-year peak. The reduction in long positions was mostly seen in the first of the past three weeks.

The recent US Treasury's buyback plan announcement led to a 0.8% decline in the dollar on Wednesday. However, the US dollar index has managed to hold above support despite this intervention and the buyback plan.

Traders appeared reluctant to abandon their dollar longs, as the index has been holding strong. The COT data is only up to last Tuesday's close, so it does not capture the recent market movements.