(Reuters) Hedge funds are making their biggest bet in seven years that the dollar will weaken as evidence mounts that U.S. economic momentum is slowing, thus limiting the scope for higher interest rates. The flattest yield curve in over a decade, with the gap between 10-year and two-year U.S. yields shrinking to just 46 basis points, suggests the current trajectory of Fed tightening is already putting the brakes on the economy.
Speculators’ $27bn Bet Against the Dollar Isn’t Paying Off
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