Bullish Dollar Bets Were the Most Crowded Trade. Not Anymore
- U.S. outlook darkens while Europe political risks abate
- Options show falling odds of dollar gain versus euro this year
Dollar Weakens as European Economy Picks Up Steam
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The dollar has been knocked off its pedestal.
Bullish bets on the U.S. currency have been toppled as the world’s most popular trade after five months of holding the top spot, according to a Bank of America Merrill Lynch survey of fund managers. Hedge funds have cut net long positions to an 11-month low. And the chances of the dollar climbing this year against the euro have plunged to just 14 percent, options markets imply.