Compromising positions
Ahead of this afternoon’s Federal Reserve meeting, we note that speculators have sharply reduced short positions against the dollar in the last month, with the capitulation coming after a series of stronger-than-expected data releases widened expected performance gaps between the United States and the rest of the global economy. Friday’s numbers from the Commodity Futures Trading Commission showed the net dollar position on the verge of flipping into bullish territory, with long trades on the euro tumbling sharply relative to levels earlier in the year. The net non-commercial futures position on the dollar against the G10 currencies plus the Mexican...