Longer-term real money investors have been buying the dollar aggressively in recent weeks. With strong buying comes, naturally, overweight positioning. Our FX Holdings indicator now shows the USD overweight to be at its most pronounced since November 2022. It is still only around 75% as big as its October 2022 peak, but that 2022 peak was the biggest USD overweight we had witnessed in over 10 years. So long as longer-term investors continue to buy the dollar, then extended overweights do not preclude further USD gains. However, once selling returns then it may very well be a case of look out below.