SLASHED BETS

CONFIRMING EVEDENCE ALTHOUGH IT'S BASIC ECONOMICS REALLY...



SUPPLY AND DEMAND WITH ANYTHING INCLUDING PAPER CURRENCY...


http://24allnews.com/doubts-arise-over-u-s-dollars-strength/



Not only would a receding flood of dollars raise the greenback’s value, the positive signal it would send about the U.S. economyDollar gains before Fed statement, U.S. GDP data - MarketWatch. Read more ... » would give the dollar additional fuel by attracting money flows from outside the U.S., analysts say.
However, disappointing economic dataWobbly U.S. Economy Shakes Faith in Dollar. Read more ... », mainly weaker-than-expected jobs growth and tepid retail sales, have prompted some currencyIs Beaten-Up Aussie Due for a Bounce?. Read more ... » investors to back away from bullish dollar bets that were based on the Fed reducing—or “tapering”—bond purchases in September, well before other major central banks would be ready to start tightening monetary policy.

Investors have slashed bets on a rising dollar by 49%, to $21.7 billion, since late May. Then, the value of wagers hit its highest level since at least 2007, when the U.S. Commodity Futures Trading Commission first started to track the dataWobbly U.S. Economy Shakes Faith in Dollar. Read more ... ». The number reflects investors’ net position in the futures market.
“We are at this turning point where investors aren’t sure whether this strong-dollar thesis is really going to hold up,” says Samir Sheldenkar, an investment partner at Harmonic Capital Partners LLP, a London hedge fund with $1.2 billion under managementWobbly U.S. Economy Shakes Faith in Dollar. Read more ... ». The fund recently pared back bets on a stronger dollar because the rate of job growth in the U.S., which the Fed is closely watching as it mulls a pullback, hasn’t picked up since the start of the year.
Now, investors like Mr. Sheldenkar say tapering is more likely to happen in December or even later.
The Fed has said it won’t start pulling back on bond purchases until the U.S. labor market sees “substantial” improvement. In July, the U.S. economy added 162,000 jobs, less than economists had expected.http://24allnews.com/doubts-arise-over-u-s-dollars-strength/