The Long U.S. Dollar Trade Is Now the Most Crowded Since 2015

Long speculative positioning in the U.S. dollar has risen to $48 billion, the highest level since 2015.
The positioning reflects directional bets by hedge funds and asset managers rather than underlying hedging needs. Bullish positioning has more than quadrupled over the past three months, with long bets now more than two standard deviations above the average since 2012.
Professional investors are on track for a sixth consecutive month of long U.S. dollar exposure, the longest streak since 2022.
Market participants are betting heavily on the U.S. dollar.