Short Dollar positioning looks quite heavy. Economists at ING analyze USD outlook ahead of rate decisions in the US, the Eurozone and Japan.
— CryptosRUs Analysis (@CRUAnalysis) July 20, 2023
Market running short Dollars into this week’s event risks
Positioning data suggests investors are running reasonably large short Dollar positions into this week’s Fed, ECB and BoJ policy meetings.
US Dollar Touces 15 Month Low, Then Bounces Back | National News pic.twitter.com/jBg5z4nJ2z
— Live National News LNN (@LnnNewsOfficail) July 20, 2023
We do like a weaker USD later this year, but the Dollar’s recent corrective rally might endure this week if the Fed hangs onto its tightening bias.
DXY looks like it could grind higher to the 101.50 area.