In July, the US dollar seemed to be in trouble after experiencing its worst performance since 1991 in the first half of the year. Concerns regarding President Trump's tariffs and pressure on the Federal Reserve to cut rates led to a significant number of bearish bets against the currency. However, in a rapid turnaround, the dollar has made a remarkable recovery in just a few weeks. By the end of June, net speculative positions in US dollar index futures had plummeted to only 6,034 contracts, the lowest level since March 2021, from over 16,800 in late March. This indicated a strong belief among traders that the dollar was on a downward trend. Nevertheless, a series of factors, such as better-than-expected inflation, a pause in Fed policy tightening, strong labor market data, and perceived trade benefits led to the dollar rebounding strongly. This unexpected turn of events may trigger a historic short squeeze for the greenback. The full story can be found on Benzinga.com.