Net dollar longs fall for 2nd week, euro shorts up -CFTC, Reuters
(Adds details, table)
Jan 30 (Reuters) - Speculators reduced bets in favor of the
U.S. dollar in the latest week and propelled net shorts on the
euro to their highest level since June 2012, according to data
from the Commodity Futures Trading Commission released on
Friday.
The value of the dollar's net long position slipped to
$44.28 billion in the week ended Jan. 27, from $46.22 billion
the previous week. Net dollar longs declined for a second
consecutive week.
That said, it was the fifth straight week that net long
dollars have hit at least $40 billion.
To be long a currency is to take a view it will rise, while
being short is a bet its value will decline.
The Reuters calculation for the aggregate U.S. dollar
position is derived from net positions of International Monetary
Market speculators in the yen, euro, British pound, Swiss franc,
Canadian and Australian dollars.
Net euro short contracts, meanwhile, totaled 184,745,
equivalent to $26.1 billion. That was the highest bet against
the euro in 2-1/2 years.
The European Central Bank announced last Thursday a
quantitative easing program that called for monthly purchases of
60 billion euros in euro zone bonds. But investors had been
shorting the euro in the run-up to the ECB announcement,
resulting in a 9 percent drop in the currency over a two-month
period.
Net shorts in the Swiss franc, on the other hand, further
contracted to 7,373 contracts, the smallest in 1-1/2 months.
The decline in franc net shorts was a reaction to the Swiss
National Bank (NYSE: NBHC - news) 's removal of the three-year old cap on the euro
against the Swiss unit two weeks ago. This means that the SNB
will no longer be able to hold massive inflows to the Swiss
franc from investors who have come see the currency as a haven
from geopolitical and economic uncertainty.
Japanese Yen (Contracts of 12,500,000 yen)
$6.858 billion
27Jan2015 week Prior week
Long 26,526 26,525
Short 91,184 104,411
Net -64,658 -77,886
EURO (Contracts of 125,000 euros)
$26.091 billion
27Jan2015 week Prior week
Long 50,489 52,047
Short 235,234 232,777
Net -184,745 -180,730
POUND STERLING (Contracts of 62,500 pounds sterling)
$4.306 billion
27Jan2015 week Prior week
Long 38,649 35,319
Short 83,989 81,027
Net -45,340 -45,708
SWISS FRANC (Contracts of 125,000 Swiss francs)
$1.021 billion
27Jan2015 week Prior week
Long 8,841 8,226
Short 16,214 18,035
Net -7,373 -9,809
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
$1.933 billion
27Jan2015 week Prior week
Long 28,914 24,238
Short 52,877 53,318
Net -23,963 -29,080
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
$3.882 billion
27Jan2015 week Prior week
Long 16,079 9,828
Short 65,022 56,408
Net -48,943 -46,580
MEXICAN PESO (Contracts of 500,000 pesos)
$1.525 billion
27Jan2015 week Prior week
Long 26,739 19,017
Short 71,312 65,280
Net -44,573 -46,263
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
$0.139 billion
27Jan2015 week Prior week
Long 11,908 10,941
Short 15,567 12,758
Net -3,659 -1,817
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Meredith
Mazzilli and Dan Grebler)