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- ⚠️CHART OF THE WEEK: The US Dollar index is the most oversold in two decades
⚠️CHART OF THE WEEK: The US Dollar index is the most oversold in two decades
Is the short US Dollar trade overcrowded?
Global Markets Investor
July 12, 2025
In partnership with
The US Dollar index has dropped ~10% year-to-date, marking one of the biggest declines in ~50 years.
The index is now trading 6.5 points below its 200-day moving average, the most since 2004. In other words, the US Dollar is extremely oversold short-term.
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Meanwhile, the net short US Dollar positions by asset managers and hedge funds dropped to the second-lowest in 4 years.
Over the last decade, the sentiment on the US Dollar has rarely been this bearish, suggesting the index might be overdue for a short-term bounce.
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