Investing.com - The Investing.com weekly sentiment index published on Monday revealed that speculators scaled back their bearish bets on the U.S. dollar for the second straight week, amid renewed expectations that the Federal Reserve could raise rates in June.
According to the report, 39.5% of investors held long positions in EUR/USD in the week ended May 20, rising from 37.8% in the preceding week.
Meanwhile, 37.1% of market participants held long positions in USD/JPY as of last week, down from 39.1% a week earlier, 38.0% of investors were long GBP/USD, compared to 41.3% in the previous week, while 43.2% of investors were long USD/CHF, declining from 47.3%.
Amongst the commodity-linked currencies, 42.5% were long USD/CAD, increasing from 37.3% a week earlier, 46.0% held long positions in AUD/USD, compared to 49.2% in the preceding week, while 45.5% were long NZD/USD, up from 44.6% a week earlier.
The report also showed that 60.2% of market participants held long positions in gold futures as of last week, rising from 54.9% in the preceding week.
Elsewhere, 34.8% of investors were long the S&P 500, compared to 37.5% a week earlier.
A reading between 50%-70% is bullish for the instrument, a reading between 30% and 50% is bearish, a reading above 70% indicates overbought conditions and a reading below 30% indicates oversold conditions.
The Investing.com series of indexes is developed in-house. Each index measures overall exposure to major currency pairs, commodities and indexes, using data from futures exchanges and OTC providers on all long and short open positions.