Morgan Stanley: Investors increase U.S. dollar positions ahead of Fed interest-rate meeting

On July 28, Morgan Stanley strategists cited data saying that investors had increased long dollar positions and short sterling positions before the Federal Reserve and the Bank of England held interest-rate talks this week. "Option pricing data shows that investors have increased positions in the U.S. dollar index and positions in the short New Zealand dollar," strategists MollyNickolin, David Adams and Andrew Watrous wrote on Monday."Option data points to long U.S. dollar positions, while futures market data also points to long U.S. dollar positions," they said."Asset managers mainly go long euros and short sterling, while leveraged funds go long sterling and short New Zealand dollar."