Forex – Dollar Woes Continue Despite Traders Slashing Bearish Bets

© Reuters. – The dollar slipped against its rivals on Monday despite data showing traders’ bearish bets on the greenback fell to its lowest in nearly three months.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.21% to 92.25.

The total value of speculators’ net short dollar position slumped to a nearly three-month low of $10.84 billion in the week ended May 8, from $15.15 billion the previous week, according to Commodity Futures Trading Commission data released on Friday.

Selling pressure in the dollar continued, however, as some strategists claimed that the greenback, which hit a high of 93.26 last week, was nearing its peak.

ING said last week it remained convinced that by the end of the year – and into 2019 – “structural forces” would drive the dollar to weaker levels.

The divergence between US growth and interest rates compared to the rest of the world – one of the reasons for the recent dollar rally – was nearing its peak, the bank warned. The dollar rose to year-to-date high of 93.26 on Wednesday.

The turn in sentiment on the greenback comes as both sterling and euro made a positive start to the week.

rose 0.29% to $1.1976 on bullish comments from European Central Bank (ECB) Governing Council member Francois Villeroy de Galhau, insisting the ECB was nearing the end of its ultra-loose monetary policy measures as first-quarter weakness in the Eurozone was transitory.

rose 0.32% to $1.3586, while rose 0.05% to Y109.45 ahead of the Japan GDP data due later this week.

fell 0.20% to $1.2769 as higher oil prices continued to keep a lid on the pair.

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