Institutions to dump tech stocks in second half after best first half in 40 years. Hedge funds shift to bearish dollar bet, flipping 20,091 contracts to short

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Hedge Funds Have Swung to an Overall Bearish Dollar Bet

Leveraged investors have shifted to a net short position on the US dollar, with 20,091 contracts flipped to short in the week through July 7. This marks a significant change from the net long position of 5,196 contracts the previous week. The Bloomberg dollar gauge has dropped 1.6% this year as signs of the Federal Reserve nearing the end of its tightening cycle and global rate increases to combat inflation have impacted the currency. Weaker-than-expected job growth in June has further bolstered expectations that the central bank will ease policy sooner. Market focus now shifts to the US CPI report as the next major risk, prompting increased selling of the dollar and potential retests of previous highs in currency pairs such as euro-USD and dollar-yen.

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