Dollar Bullish Speculation Drops as Weak US Data Cuts Rate Hike Expectations

Weak US consumption, inflation, and employment data have eroded long-dollar rationale. Speculators are reducing bets on dollar strength, with DXY potentially confined to 95-100 range.

Woofun AI reports that Societe Générale analyst Keith Juicks stated speculators are diminishing bullish wagers on the US dollar due to weakening fundamentals for long positions. Current market activity remains thin as a result of this shift. Juicks highlighted that recent US economic indicators, including consumption, inflation, and employment, have all missed expectations. These data points have led markets to scale back forecasts for a US rate hike. The analyst noted the key uncertainty is whether traders will await September data or accept that the DXY may remain within the 95-100 band for the remainder of the year.