Bullish Dollar Sentiment Surges By Most In Years, As CFTC-Based Rumors Of Euro Demise Are Not Exaggerated

For once the speculators got it right. In the week ended September 20, net USD futures and options exposure surged by the most in years, with net non-commercial contracts soaring by a whopping 22,577 contracts to the highest since April of 2010. The flip trade is a collapse in EUR sentiment, which saw net exposure plunge by 25,001 from -54,459 to -79,460, the most bearish sentiment in the European currency has been since June 2010. Net net: the euro is now massively oversold explaining why even the smallest of rumors initiates a furious short covering squeeze. And yes, the next bubble is now not in silver, not in gold, but in the dollar. The first sign of moderation of European stress, or a Hilsenrath piece on the next round of QE by the Chairsatan, and watch the DXY and the various USD pair collapse (and gold surge).

Source: CFTC COT