Hedge funds are ramping up bets against the US Dollar: 1-month risk reversals on the Bloomberg Dollar Spot Index are down to -0.25, their lowest since February. This measures the difference in demand between bullish and bearish Dollar options. By comparison, this metric was positive from March through July, marking a sharp reversal in positioning over the last few weeks. Furthermore, demand for US Dollar put options versus the Euro was +47% higher than US Dollar calls on August 21st, according to Depository Trust and Clearing Corp data. Meanwhile, the Bloomberg Dollar Spot Index has declined -2.8% over the last 2 months, to its lowest since May. Bets against the US Dollar are surging.(The Kobeissi Letter)