Currency speculators raised bets on the dollar to the highest in 11 months in the latest week, using CFTC data calculated on the yen, euro, Swiss franc, sterling, aussie and loonie.
U.S. dollar's net long position rose from $26.83 billion in the prior week to $32.27 billion in the week ended May 14. Data is collated through to Tuesday and released late in the New York session on Friday.
Short positions in all widened which for now suggests dollar bullishness will remain. Yen was the largest net short at 88,407 net short contracts or about US $11 billion. Expect more yen downside in coming weeks as the Japanese authorities go all out to finally end the long economic malaise.
The most radical move came in the aussie which went from net long to net short by 13,450 contracts or US$1.3 billlion. The drop through parity has undoubtedly hurt the aussie but with concerns mounting about the end of the Australian resource boom, the currency is likely to see bearish positions increasing.
The dollar may be marching to its own tune with forex trading globally increasingly focused on when and how soon the Fed will exit QE.