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Hedge Funds Increase Bets Dollar Will Decline

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http://www.telegraph.co.uk/finance/economics/8486876/Hedge-funds-increase-bets-dollar-will-decline.html

Hedge funds increased their bets against the dollar to a massive $28.6bn (£17.1bn) in advance of Ben Bernanke's historic first press conference as chairman of the Federal Reserve last week.

The sum held in short positions against the world's reserve currency on April 26 is the highest in more than month and $3bn more than the previous week.

The figures, released over the weekend by the Commodity Futures Trading Company (CFTC), indicate that hedge funds have made hundreds of millions of dollars from the recent collapse in the value of the greenback.

The dollar hit a three-year low against a basket of currencies on Friday, and has fallen for the last five months straight. It fell 3.8pc against the basket in April, and is down 7.5pc down so far this year.

The data shows that investors are pulling out of the dollar in favour of almost every other currency except the Japanese yen.

I'm sure none of these bets will be with leveraged money... As they are hedging what counter positions are these funds holding?

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One silver lining for US IT workers is that this, coupled with Indian wage inflation will mean that outsourcing to India will get even more expensive.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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