ANZ: The bearish attitudes to the dollar are overexposed

The US dollar received a serious "slap" this year, with the dollar index down by 9% since the beginning of the year. Not all analysts, however, are so negative towards the dollar.
The political uncertainty surrounding the Trump administration is cited by ANZ analysts as the main reason for the "excessive depreciation of the dollar" over other major currencies.
Leverage funds currently have a net short position in the dollar, which has taken the levels of "green money" far beyond the foundation, analysts said.
The weakness of the underlying reserve currency became a reality, despite the rise in Fed's interest rates, which outstripped other central banks around the world. In addition, the Fed's balance sheet is expected to start shrinking relatively soon, which will be another factor that will work to support the US dollar.