Speculators cut their net long bets on the US dollar in the latest week to the smallest position in 19 months, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday. The value of the net long dollar position was $6.64 billion in the seven-day period ended Jan. 14, down from $9.07 billion last week. This week's long US dollar position is the smallest since June 12, 2018.
To be long a currency means traders believe it will rise in value, while being short points to a bearish bias. US dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc and Canadian and Australian dollars.
In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the US dollar posted a net long position valued at $1.54 billion, down from $4.33 billion a week earlier.
The dollar had strengthened as trade tensions heightened and fell earlier this week as the US-China trade deal was being signed. The move, however, was not sustained in second half of the week. That may ultimately be reflected in next week's positioning data, which will cover the period of Jan. 25 through Jan. 28.
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