US net long dollars flat from last week's levels

Speculators' net long US dollar positioning was little changed from last week's levels, according to calculations by Reuters and US Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar position was $13.32 billion in the week ended Nov. 5, compared with $13.28 billion the previous week, data showed.

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 of $12.219 billion from $12.563 billion a week earlier.

The decline in US net long position stabilized this week as news headlines suggested a US-China trade deal was in the works. The journey though to an agreement has been fraught with uncertainty and confusing headlines with respect to whether or not existing tariffs on Chinese goods will be rolled back.

That said, market sentiment is skewed toward a deal being completed.

"The US could offer China a partial and not a full reversal of tariffs," said Kathy Lien, managing director of FX strategy, at BK Asset Management in New York. "This gesture of goodwill could be enough to satisfy the market and sustain the rally in equities and currencies."

The US-China trade news and related concerns about a slowing global economy have been key drivers in the currency market, with persistent tensions benefiting the dollar, the yen, and Swiss franc as safe havens.

The dollar has also been supported by expectations that the Federal Reserve will pause its rate-cutting cycle this year after it cut interest rates last month for the third time in 2019.

So far this year in the midst of the Fed's easing phase, the dollar index has risen 2.3%.