UPDATE 1-Specs trim short US dollar bets in latest week-CFTC, Reuters

Fri Feb 1, 2013 9:49pm GMT

NEW YORK, Feb 1 (Reuters) - Currency speculators pared bets against the U.S.
dollar in the latest week, according to data from the Commodity Futures Trading
Commission released on Friday.
    The value of the dollar's net short position fell to $8.86 billion in the
week ended Jan. 29, from shorts of $13.26 billion the previous week. It was the
eighth straight week of net short bets on the dollar.
    To be short a currency is to bet it will decline in value, while being long
is a view its value will rise.
    The Reuters calculation for the aggregate U.S. dollar position is derived
from net positions of International Monetary Market speculators in the yen,
euro, British pound, Swiss franc, Canadian and Australian dollars.
    Bets on the euro or longs rose to 27,472 contracts this week from 21,381
previously.
    "A rising net long euro position ... suggests that investors remain biased
toward further upside as euro heads toward levels not seen since late 2011,"
said Camilla Sutton, chief currency strategist, at Scotia Capital in Toronto.
    She added that the euro position was balanced, which reduces the risk of a
rapid unwinding. "There remains considerable scope for additional short-covering
given the (roughly) 66,000 gross short position."
    Yen shorts, meanwhile, rose in the latest week, with 71,246 contracts from
shorts of 64,068 the previous week.
      
    JAPAN YEN (Contracts of 12,500,000 yen) 9,815,661,853.85
             1/29/13 week         1/22/13 week
   Long          48,476               41,983
   Short        119,722              106,051
   Net          -71,246              -64,068
 
    EURO (Contracts of 125,000 euros) -4,632,809,400.00
             1/29/13 week         1/22/13 week
   Long          93,791               83,840
   Short         66,319               62,459
   Net           27,472               21,381
 
  POUND STERLING (Contracts of 62,500 pounds sterling) -1,046,399,775.00
             1/29/13 week         1/22/13 week
   Long          57,989               60,201
   Short         47,367               42,263
   Net           10,622               17,938
 
   SWISS FRANC (Contracts of 125,000 Swiss francs) -562,913,907.28
             1/29/13 week         1/22/13 week
   Long          11,994               15,232
   Short          7,846                8,848
   Net            4,148                6,384
 
  CANADA DOLLAR (Contracts of 100,000 Canada dollars) -3,502,897,681.85
             1/29/13 week         1/22/13 week
   Long          53,915               66,225
   Short         18,858                8,273
   Net           35,057               57,952
 
    AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) -8,934,756,000.00
             1/29/13 week         1/22/13 week
   Long         124,520              143,776
   Short         39,224               46,765
   Net           85,296               97,011
 
    MEXICO PESO (Contracts of 500,000 pesos) -5,854,839,344.00
             1/29/13 week         1/22/13 week
   Long         156,862              159,909
   Short          7,991                9,872
   Net          148,871              150,037


    NEW ZEALAND DOLLAR (Contracts of 100,000 NZ dollars) -1,830,580,560.00
             1/29/13 week         1/22/13 week
   Long          26,830               28,815
   Short          5,014                5,283
   Net           21,816               23,532
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