USD Futures Decline for 10th Session in 11 Days on Fed Cut Bets
US Dollar futures extended their decline for the 10th session in 11 trading days, with March 2024 DXY futures dropping 0.4% to 104.85 as markets fully price in Wednesday's expected Fed rate cut. The persistent selling pressure has pushed the dollar to two-week lows against major currencies, with EUR/USD futures advancing to 1.0590 and GBP/USD futures climbing above 1.2750. Technical momentum indicators show oversold conditions on the daily RSI at 28, suggesting a potential bounce if the Fed delivers a hawkish surprise. However, fund flow data reveals continued USD liquidation by institutional investors positioning for a dovish Fed pivot. Currency futures positioning data shows record short USD positions among leveraged funds. The sustained weakness reflects growing conviction that the Fed's tightening cycle has peaked, with markets now pricing in 100 basis points of cuts through 2024.
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