Speculators lift U.S. dollar net longs to highest since Feb -CFTC, Reuters

* Dollar net long bets rise to highest since Feb. 2

* Sterling net shorts rise to most since 2013

(Adds data on sterling, euro)

By Dion Rabouin

NEW YORK, July 29 (Reuters) - Speculators raised bullish

U.S (Other OTC: UBGXF - news) . dollar bets this week to the highest level in nearly five

months, as investors were encouraged by strong U.S. economic

data that reinforced expectations of an interest rate hike by

the Federal Reserve in 2016.

The strong dollar position was also bolstered by short bets

against the British pound and euro in the wake of Britain's vote

to leave the European Union.

The value of the dollar's net long position increased to

$13.66 billion in the week ended July 26 from $10.42 billion the

previous week, according to Reuters calculations and data from

the Commodity Futures Trading Commission released on Friday.

That was the highest level since Feb. 2 and the 10th

straight week of net dollar long positioning by speculators.

The week's trading ended prior to the release on Friday of

second-quarter U.S. gross domestic product data, which showed

the economy grew by 1.2 percent on an annualized basis.

Economists polled by Reuters had expected 2.6 percent growth.

The dollar had been buoyed by a much stronger-than-expected

June U.S. non-farm payrolls report, which came out two weeks

ago, and inflation, retail sales and jobless claims data that

pointed to a strengthening U.S. economy.

The data helped bolster bets the Fed would raise rates by

year-end, with Fed funds futures rates showing traders had

priced in a greater-than-50-percent chance of a rate hike

earlier in the week, according to CME Group (Kuala Lumpur: 7018.KL - news) 's FedWatch.

"People were positioned for a hawkish Fed," said Axel Merk,

president and portfolio manager at Merk Hard Currency Fund in

Palo Alto, California. "When everybody assumes something's going

to happen, everybody's positioned that way. Then the news

comes."

Brexit has also spurred an increase in net short positions

against both the British pound and the euro.

Sterling net-short positions rose to 80,572, the highest

since June 2013. Speculators placed more than 100,000 net short

contracts against the euro, the largest net-short position in

the continental currency since late January.

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

and Canadian and Australian dollars.

Japanese Yen (Contracts of 12,500,000 yen)

$-4.176 billion

26 Jul 2016 Prior week

week

Long 74,074 79,864

Short 39,116 40,511

Net (LSE: 0LN0.L - news) 34,958 39,353

EURO (Contracts of 125,000 euros)

$15.463 billion

26 Jul 2016 Prior week

week

Long 109,193 111,578

Short 221,793 211,469

Net -112,600 -99,891

POUND STERLING (Contracts of 62,500 pounds sterling)

$6.61 billion

26 Jul 2016 Prior week

week

Long 29,819 27,959

Short 110,391 102,345

Net -80,572 -74,386

SWISS FRANC (Contracts of 125,000 Swiss francs)

$-0.119 billion

26 Jul 2016 Prior week

week

Long 26,807 23,191

Short 25,861 18,504

Net 946 4,687

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

$-1.758 billion

26 Jul 2016 Prior week

week

Long 44,023 43,086

Short 20,843 21,018

Net 23,180 22,068

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)

$-2.363 billion

26 Jul 2016 Prior week

week

Long 57,083 61,642

Short 25,573 28,211

Net 31,510 33,431

MEXICAN PESO (Contracts of 500,000 pesos)

$1.24 billion

26 Jul 2016 Prior week

week

Long 24,114 24,675

Short 70,676 64,041

Net -46,562 -39,366

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)

$-0.015 billion

26 Jul 2016 Prior week

week

Long 26,598 29,156

Short 26,383 26,983

Net 215 2,173

(Reporting by Dion Rabouin; Editing by Leslie Adler and Richard

Chang)