Speculators increased bets in favour of the US dollar in the latest week and pushed net shorts on the euro to their largest since June 2012, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position expanded to $45.82 billion in the week ended February 3, from $44.28 billion the previous week. This was the sixth straight week that net long dollars have hit at least $40 billion.
Net euro short contracts, meanwhile, totalled 196,309, equivalent to $26.28 billion, from 184,745 the previous week. This week was the largest short bet on the euro in about 2-1/2 years. 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 US dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.
Comments
Comments are closed.