Dollar Risks Grow as Hedge Funds Make Greenback Most Favored Bet
- HSBC, SocGen warn U.S. currency's rally is poised to reverse
- Wagers on dollar gains in futures market approach record high
Is the Dollar Rally About to End?
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The dollar is on the cusp of its longest winning streak since March and traders keep piling in, yet a growing number of influential strategists are starting to sound alarm bells.
The potential for a pullback is growing, according to Societe Generale SA and HSBC Holdings Plc, which highlighted the U.S. currency’s vulnerabilities before a second-quarter setback. A gauge of the greenback has gained almost 5 percent from this quarter’s low on Oct. 15. Three rallies of similar magnitude ended with 3 percent downturns in March, June and August.