Traders Are Ramping Bets Against The Dollar Again

Despite the dollar’s recent rebound, as shown by a chart of the Dollar Index (DXY) below, traders are increasing their bets against the currency, while increasingly going long the Canadian dollar and yen.

Reuters:

The value of the dollar’s net short position rose to $9.77 billion in the week ended Sept. 7, compared to a net short position of $7.1 billion the previous week, according to CFTC and Reuters data.

Speculators raised bets slightly in favour of the yen and also went long the Canadian dollar, reversing a net short position the prior week.

Given how much the dollar strengthened during the height of the Eurozone crisis, it seems these dollar traders believe the worst is over for Europe.

Chart

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