A recent survey by Bank of America shows record short positions against the US dollar, with net exposure falling to new lows. Data shows (survey details) that investors now expect further dollar weakness due to a shifting Fed outlook and worries about US policy.
The positioning is the most bearish and volatile for the dollar in a decade. Speculative bets against the USD represent the largest sentiment shift since February 2012.
The survey links rising shorts to a weakening US labor market. A tweet (a post reporting labor data) noted 9.3 million Americans work multiple jobs and average weekly hours fell to about 34.5.
Traders say the dollar is being treated more like a volatility tool amid uncertain policy signals. Growing speculative short positions could amplify moves if market sentiment changes.
