Hedge Funds Trim Bullish Dollar Wagers on Brink of Fed LiftoffBy
Falling oil prices support expectations for gradual Fed move
Central bank’s interest-rate decision due on Dec. 16
Hedge funds are less bullish on the dollar even as the final countdown to next week’s likely Federal Reserve interest-rate increase begins.
Large speculators’ futures wagers on a stronger dollar against a basket of eight currencies fell to net 379,040 contracts in the week through Dec. 8, from 417,129 the week before, according to Commodity Futures Trading Commission data. Their optimism toward the greenback has dimmed for two straight weeks.
Tumbling oil prices are containing inflation expectations and backing Fed officials’ signals that they’ll stick to a gradual pace of rate increases after liftoff, potentially constraining support for the U.S. currency…
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