According to Dow Jones, speculators on the IMM added to their net dollar longs, based on data from the CFTC. As of the close of business on Tuesday, Specs were 3% longer the buck than last week. This help explains the continuing short-covering rally in EUR/USD, GBP/USD and AUD/USD this week.
Mr. Market loves to inflict pain, and this was a painful week for those betting on an immediate European collapse and a renewed US recession.
