Societe Generale analyst Kit Jukes says weakening justification for dollar longs
has prompted speculators to cut bullish dollar positions amid light trading. He
warns this month’s US data—broad softness across consumption, inflation and
employment—may have sent a false signal but has already led markets to lower US
rate-hike expectations. The choice now, he says, is to wait for September data
or accept the dollar index could trade in a 95–100 range for the remainder of
the year.
