Speculative selling of dollars against ten IMM currency futures and the Dollar Index extended into a sixth week. In the week to last Tuesday the combined Greenback long had been cut to a fresh 18 months low at just $2.9 billion. Only aggressive selling of JPY (19k lots = $2.2 bn), as it reached a new low, prevented the dollar position from returning to neutral.
During the past six weeks, while the dollar long was cut by 74%, the Greenback weakened by less than 0.5% against a broad basket of currencies. It highlights the potential short term risks to positions should the dollar suddenly pop higher.