Aug 31 (Reuters) – The dollar is poised to register a fourth straight monthly drop on Monday as investors bet on U.S. rates staying low for longer , with the latest data revealing the biggest bet against the dollar by FX speculators in over nine years.
International Monetary Market data show that for the week ending Aug. 25, the value of the net short USD position held by speculators rose to $33.7 billion from $31.6 billion the previous week. That highlights the continued shift in sentiment away from the dollar.
The USD index, which tracks the dollar versus a basket of six currencies, remains on course to register its second monthly close under the major 93.881 Fibonacci level, a 61.8% retracement of the 88.251 to 102.99 (2018-2020) rise. Medium-term scope is for an eventual deeper drop through 91.729, a 76.4% retracement of the same 88.251 to 102.99 gain.