Dollar’s Big Bounce Meets a Wall of Doubt in Options Market (3)

A Bloomberg gauge of the dollar capped its worst day in more than a month, paring Monday’s advance as traders doubted the durability of the currency’s surge on the back of easing US-China trade tensions.

The Bloomberg Dollar Spot Index fell 0.7% on Tuesday as positioning in the options market continued to lean against the currency. Depository Trust & Clearing Corporation data show that dollar bearish bets so far this week total around $61 billion in notional value, more than the $55 billion in bullish trades. Pound sterling rallied 1% versus the greenback late in Tuesday trading, alongside steep gains ...