Hedge Funds Head for Cover as Dollar Rebound Gathers Momentum
- Speculative funds reduced long bets on euro, Aussie and pound
- Breach of 1.6% U.S. yields will trigger ‘proper scare’: Mizuho
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The dollar rebound is picking up pace, with signs that speculative traders are busy covering short positions after U.S. Treasury yields surged.
The Bloomberg Dollar Spot Index surged Monday to touch the highest since Dec. 23. Traders are reporting strong demand from leveraged funds, with the greenback leading major currency advances. That adds to data released from the Commodity Futures Trading Commission that showed them trimming long positions on major currencies including the euro and the pound.