The US dollar has had a rough month.
In a report, Bloomberg notes that the dollar is down for a seventh straight day, the longest such streak in three years.
It’s also down for April, and could end a nine-month streak, as Ryan Detrick points out on StockTwits.
On Thursday, the dollar index fell by up to 0.18%.
And now, traders are starting to lose confidence in this rally, which has taken the dollar to an 11-year high.
From the report in Bloomberg:
The drop has surprised speculators who were the most bullish on the dollar in at least six years, leading investors to question the $US5.3 trillion currency market’s biggest one-way trade. The divergence between a Fed that’s seeking to normalize rates, and the more than 20 central banks worldwide that cut borrowing costs this year, had made betting on the dollar seem almost a sure thing.
The number of trader bets on the dollar’s continued rise is higher than those forecasting a move in the opposite direction.
But according to Bloomberg, that difference, or net bullish bets, shrunk to a six-month low last week. The data is compiled by the Commodity Futures Trading Commission.
As the Fed made moves towards raising rates while other central banks kept rates low, the dollar became more attractive.
But the rally has slowed down.