Hedge Funds Are Long The U.S. Dollar – Big Time $UUP


Hedge funds are taking advantage of the rising value of the U.S. dollar, which they don’t seem to expect to reverse course anytime soon. New data indicates that funds are more bullish on the dollar than ever, as they’ve set a new record in long dollar positions verses the euro. The previous record was set in June 2012.

Hedge funds’ long dollar vs. short euro at “unprecedented levels”

Analyst Alain Bokobza and the rest of the team at Societe Generale released their latest “Hedge Fund Watch” report on April 9. They warn that investors should “feel at least slightly ill at ease” because of how extreme the shift toward the long dollar has become. They point out that the shift is nearly three standard deviations from the historical net positions, as shown in the following chart (All graphs and charts in this article are courtesy Societe Generale.):

Hedge Funds Are Long The U.S. Dollar – Big Time $UUP

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