UPDATE 1-Speculators go long on US dollar, 1st time since Sept
Nov 9 (Reuters) - Currency speculators favored the U.S. dollar in the latest week for the first time since early September, according to data from the Commodity Futures Trading Commission released on Fri day. The value of the dollar's net long position totaled $1.296 billion in the week ended Nov. 6, from net shorts of around $710 million the previous week. It was the first net long position for the greenback in two months. To be long a currency is to bet it will increase in value, while being short is a view its value will decline. The dollar has been a major beneficiary of safe-haven flows as worries about Europe came to the fore once again. Expectations about slower growth in Germany and uncertainty about whether Spain would seek a bailout or not have weighed on the euro and benefited the dollar. In addition, worries over a looming "fiscal cliff" for the United States, which could trigger tax increases and spending cuts if not addressed, have also prompted investors to seek the greenback's safety. "Risk aversion remains firmly entrenched," said Samarjit Shankar, director of strategy at BNY Mellon in Boston. He cited BNY Mellon's iFlow FX indicators, which showed that the U.S. dollar remains steadily net bought. In contrast, Shankar said he saw continued outflows from the euro, which has now been net sold for a sixth successive trading day. The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, sterling, Swiss franc, Canadian and Australian dollars. JAPAN YEN (Contracts of 12,500,000 yen) 6,239,731,142.64 11/06/12 week 10/30/12 week Long 24,966 19,886 Short 65,070 56,906 Net -40,104 -37,020 EURO (Contracts of 125,000 euros) 10,753,470,412.50 11/06/12 week 10/30/12 week Long 45,212 38,189 Short 112,353 96,393 Net -67,141 -58,204 POUND STERLING (Contracts of 62,500 pounds sterling) -1,927,297,531.25 11/06/12 week 10/30/12 week Long 57,208 57,897 Short 37,929 34,494 Net 19,279 23,403 SWISS FRANC (Contracts of 125,000 Swiss francs) 40,164,369.03 11/06/12 week 10/30/12 week Long 13,509 11,785 Short 13,812 9,419 Net -303 2,366 CANADA DOLLAR (Contracts of 100,000 Canada dollars) -7,538,011,695.91 11/06/12 week 10/30/12 week Long 82,882 86,306 Short 8,120 7,535 Net 74,762 78,771 AUSTRALIA DOLLAR (Contracts of 100,000 Aussie dollars) -6,290,459,930.00 11/06/12 week 10/30/12 week Long 98,037 91,030 Short 37,720 38,940 Net 60,317 52,090 MEXICO PESO (Contracts of 500,000 pesos) -4,414,667,458.89 11/06/12 week 10/30/12 week Long 120,223 130,624 Short 5,801 4,615 Net 114,422 126,009 NEW ZEALAND DOLLAR (Contracts of 100,000 NZ dollars) -1,603,193,720.00 11/06/12 week 10/30/12 week Long 24,440 20,849 Short 5,052 4,104 Net 19,388 16,745
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DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.