The Fed rate cut bets fade, the dollar sets the longest consecutive rise in nearly three years

The Bloomberg Dollar Spot Index has risen for the 8th consecutive day, setting a record for the longest continuous increase since April 2022. Strong US employment reports have eliminated the possibility of a Fed rate cut, pushing the dollar to its highest level since mid-August. Traders are reconsidering their bets on US easing policies, leading to a general appreciation of the dollar against currencies of the ten-country group. Investor preference for US assets has increased, leading to a gradual reduction in short interest positions on the dollar