LONDON, July 16 (Reuters): The dollar slipped on Monday, having notched up its biggest weekly gain in a month last week.
A rebound in risk appetite prompted investors to diversify away from their long dollar bets which have grown rapidly in recent weeks.
Outstanding dollar bets are at their highest levels since early 2017 with latest weekly data showing yet another increase in positions as growing concerns about trade tensions and a rebound in US economic data fueled demand for the greenback.
"What we are seeing now is some sort of a reversal in that trend as European economic data have shown some improvement while the US economy is displaying classic symptoms of a late-cycle," fund manager Constantin Bolz of German-based wealth manager Portfolio Concepts said.
Against a basket of its rivals, the greenback fell 0.2 per cent to 94.60 after rising 0.7 per cent last week, its biggest weekly rise since mid-June.
The dollar's growing inverse correlation with global risk appetite has also fueled a near 6 percent rise in the greenback over the last three months.
Monday's bounce in European stocks led by strong results from Deutsche Bank, snapped that trend.
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