International Money Market currency speculators extended their bets on sterling to a fresh record and maintained hefty positions against the dollar in the week ended August 15, data released on Friday showed.
The overall net short dollar position held by investors in the IMM against six major currencies held steady at $17.4 billion from $17.6 billion the week before, according to Reuters calculations. The six other major currencies are the euro, yen, sterling, Swiss franc, and Canadian and Australian dollars.
But the net long sterling position grew to 63,196 contracts, or $7.4 billion, compared with the prior week when speculators were net long 55,626 contracts, or $6.6 billion.
US data this week has underscored the view that economic growth is slowing from the heady pace at the beginning of the year, including the lowest reading of homebuilder sentiment in more than 14 years. Also, gauges of core consumer and wholesale inflation on Tuesday and Wednesday that came in below expectations lent credence to the Federal Reserve's decision to hold interest rates steady and hope that slowing growth brings down inflation pressures. Net long Australian dollar positions on the IMM were increased 39,092 contracts, the largest in 17 months, from 33,057 contracts in the previous week.