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Currency speculators trimmed bets against the dollar for a fifth straight week and more than doubled bets against the euro, data from the Commodity Futures Trading Commission showed on Friday. The value of the dollar's net short position edged down to $8.42 billion in the week ended December 7 from $8.55 billion the previous week, according to Reuters and CFTC calculations.
Bets against the euro were more than doubled in the week, while speculators nearly tripled short sterling positions. But the impact on the overall dollar position was mitigated by a sharp rise in long Australian and Canadian dollar positions. A short position is a bet a currency will fall. 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.

Copyright Reuters, 2010

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