Speculators trimmed positive bets on the US dollar for a second straight week, according to data from the Commodity Futures Trading Commission and Thomson Reuters released on Friday. The value of the dollar's net long position slipped to $40.27 billion in the week ended April 7, from $40.37 billion the previous week. This is the third straight week that net long dollars hit at least $40 billion.
Net euro shorts slid to 215,258 contracts from a record 226,560 contracts the previous week. Investors are expected to sell the euro further as the European Central Bank is in the midst of a massive quantitative easing program that would expand its balance sheet.
To be long a currency is to take a view that it will rise, while being short is a bet that 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 and Canadian and Australian dollars.
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