Latest news with #DollarSpotIndex
Bloomberg
20-06-2025
- Business
- Bloomberg
The Dollar Is Hanging On to Its Haven Role by a Thread, Survey Shows
The escalating Middle East conflict is likely to help the dollar hold on to its haven role — but only just, the latest Bloomberg Pulse survey shows. A little more than half of 251 respondents think the US currency will regain its status as a safe asset as Iran and Israel continue to carry out attacks on each other. Yet participants also see the Bloomberg Dollar Spot Index falling over the next month, according to the poll conducted June 13-18.
Yahoo
22-04-2025
- Business
- Yahoo
Bearish dollar bets move toward levels that raise risk of recoil
(Bloomberg) — Investors looking for short-term relief in the beleaguered dollar (DX=F) may be encouraged by technical indicators and market positioning that suggest some overshooting of bearish bets. DOGE Visits National Gallery of Art to Discuss Museum's Legal Status Trump Gives New York 'One Last Chance' to End Congestion Fee Trump Administration Takes Over New York Penn Station Revamp The Racial Wealth Gap Is Not Just About Money Nashville's $3 Billion Transit Plan Brings a Call for Zoning Reform The dollar fell to the lowest since December 2023 this week after President Donald Trump's threat to fire Federal Reserve Chair Jerome Powell along with the risk of a recession in the US turbocharged the 'sell America' trade. 'The dollar is poised for a rebound — short-lived or not,' said Ken Cheung, chief Asian foreign-exchange strategist at Mizuho Bank Ltd. 'Large bearish positions, technicals and real yield differentials suggest the greenback could bounce back' although its gain may be limited by dollar-negative headlines, he said. The relative-strength index for the Bloomberg's Dollar Spot Index has fallen to the lowest since 2020, suggesting that the currency's nearly 10% drop from this year's high in February may have been excessive. The RSI's drop to similar levels in July 2023 was followed by a rally of about 7% in the dollar in the subsequent months. A surge in bearish positioning on the dollar may be another indicator of an impending rebound. Speculators' net bearish positions on the greenback against 10 currencies and on the Dollar Index surged to $40 billion last week, the most since October, based on data from the Commodity Futures Trading Commission aggregated by Bloomberg. 'The dollar selloff may seem stretched for now,' said Christopher Wong, a foreign-exchange strategist at Oversea-Chinese Banking Corp. 'Short dollar is also a big consensus trade, and that warrants some caution especially if there is any short covering.' Data from the Federal Reserve show an increase of more than $10 billion in marketable Treasury securities held on behalf of overseas central banks, monetary authorities and international organizations in the two weeks ended April 16. This shows that the rout in Treasuries didn't deter reserve managers from accumulating US government bonds, a move that's supportive of the dollar. The dollar still holds a yield premium versus other major currencies on an inflation-adjusted basis, which could also provide an impetus for the greenback's rebound. The greenback struggled to hold gains on Tuesday, as it rose as much as 0.2% in early Asian trade before flipping to a loss. It has only closed higher in three sessions so far this month. —With assistance from Marcus Wong, David Finnerty and Michael G. Wilson. Why US Men Think College Isn't Worth It Anymore The Guy Who Connected Donald Trump to the Manosphere Eight Charts Show Men Are Falling Behind, From Classrooms to Careers How Mar-a-Lago Memberships Explain Trump's Tariff Obsession Why Brunello Cucinelli Is Well Suited for a Trade War ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio
