Currency speculators increased bets the US dollar has room to rise to the highest level since the week of September 23, 2008, according to Commodity Futures Trading Commission data released on Friday and Reuters calculation. The value of the dollar's net long position rose to $9.412 billion in the week ended February 9, up from $5.84 billion in the prior week.
The Reuters calculation for the aggregate US dollar position is derived from the net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars. The net short euro position at 57,152 contracts was a record. Euro open interest jumped 10,579 contracts to 197,457 contracts. Open interest is taken as a sign of the strength in a given price movement, though not an indication of direction.
Increasing open interest is said by analysts to illustrate strength behind the price movement, while a drop shows weakening price movement. A rise in open interest also indicates that the security is being actively traded, while a decline would show less activity. Speculators also increased short bets against sterling and the Swiss franc.
The sterling short position was the largest since the period ended October 13, 2009 while the Swiss franc position was the largest since December 29, 2009. In the latest week, speculators also increased their bets on the yen, pushing long positions to 22,396 contracts, the most since the period ended December 8.
Comments
Comments are closed.