Traders Look Beyond Euro for Next Round of Short Dollar Bets

Traders are seeking alternatives to the euro when shorting the dollar as they look to capitalize on expectations for further weakness in the US currency.

Long euro positions against the greenback remain in favor due to optimism over increased defense spending in the single-currency region. Traders though are looking to bet currencies such as the Chinese yuan, Australian dollar and South Korean won will strengthen versus their US peer on expectations the Federal Reserve will resume interest-rate cuts and as American exceptionalism fades.