Investors have doubled down on their bearish outlook for the US dollar as President Donald Trump’s relentless global trade war raises doubts about the economic stability of the world’s superpower.
The White House’s economic upheaval has prompted fund managers to dump both US stocks and bonds in the “sell America trade”, a phrase now commonly touted in brokers’ daily investment notes to explain the wild price swings in financial markets.
But investors, including hedge funds, have piled into negative bets on the US dollar, pushing net short positioning to its largest level since 2024, according to the International Monetary Market data. There are now 89,200 net shorts contracts on the greenback compared to a 425,000 net long contract when Trump returned to the White House in January.
Source: https://www.afr.com/markets/debt-markets/trade-war-triggers-record-short-positions-in-us-dollar-20250428-p5lupp