UUP - Investors Ditch US Dollar At The Fastest Pace In A Year | Benzinga
Investors are ditching U.S. dollar holdings at the fastest pace seen in a year as they position for an end to the Federal Reserve’s rate hike cycle and look ahead to possible rate cuts in the first few months of 2024.
The dollar index (DXY) has lost nearly 3% since the start of November, putting the measure — which tracks the performance of the dollar against a basket of rival currencies — on course for its worst month in more than a year.
In the same period of time, the Invesco DB USD Index Bearish ETF (NYSE:UDN), which tracks bearish sentiment on the dollar, has gained 2.8%, while the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), tracking bullish sentiment, has fallen 2.3%.
Asset Managers Selling Dollar Positions
According to data from State Street, published on Friday in the Financial Times, asset managers are on track to sell 1.6% of their open dollar positions this month, the largest monthly outflow since November 2022.
The ...