Large investment funds and private investors are confident in further strengthening of the U.S. dollar. Hedge companies together with other major speculators increase volumes of long positions on the U.S. dollar. According to official data published by the U.S. Commodity Futures Trading Commission (CFTC), the sum hit a record level of $48 billion. Currency market participants are ready to extend the biggest rally of the greenback since the global financial crisis. The majority is betting on a strong growth against five key currencies. According to statistics, the Dollar Index Spot has gained almost 10 percent since mid-year. "The U.S. is still the cleanest shirt in the dirty laundry. I do not view that the popularity of the U.S. dollar growth rates is excessive: these positions are associated with the potential for further economic growth," Jennifer Vail, the head of fixed income at Minneapolis-based U.S. Bank Wealth Management, said. As of mid-November, the number of net long positions on the U.S. dollar of hedge funds and other large speculators reached 393,529 futures. This situation is primarily due to the expectation that interest rates will be increased in the USA as well as to the divergence in monetary policy of the Fed and central banks in Europe and Japan. Recently, the demand for the American currency rose amid growing expectations of the deflation in the eurozone, the technical recession recorded in Japan, and the slowdown in developing countries led by China. So, investors are forecasting a steady strengthening of the U.S national currency.
