08 August 2016 at 8:04 GMT
By Ole Hansen
Hedge funds reduced bullish dollar bets for the first time in five weeks ahead of the US jobs report last week. Short-covering in EUR and renewed buying of JPY helped offset light selling of others.
EUR resilience helped drive an 8% reduction in the net short. During the previous six weeks the net short almost doubled despite EURUSD holding support.
GBP continued to be sold with the net short hitting a record high ahead of Bank of England’s rate cut decision last Thursday.
– Edited by Clare MacCarthy