From Morgan Stanley’s latest FX Position tracker note, more confirmation that investors are getting crazy bullish about the dollar.
USD long positioning surged into extreme territory over the past week. The move was broad based, with our clients, non-commercial IMM (international monetary market) accounts, Japanese retail, and global macro hedge funds all large buyers.
The surging shaded blue bar shows how extreme long USD dollar positioning has become.
Morgan StanleyAs for why the US dollar so loved these days?
It’s a combination of Fed exit talk, the weakening yen, cheapening commodities.