(Adds table, byline, analyst comments details on euro, dollar contracts) By Saqib Iqbal Ahmed NEW YORK, May 26 (Reuters) - Net long positioning on the euro rose to its highest in more than three years, according to calculations by Reuters and Commodity Futures Trading Commission data released on Friday. Euro net long contracts were at 64,845, the largest since March 2014. The common currency has gained 2.6 percent this month on factors including an ebb in French political concerns and upbeat euro zone data. Much of the long positioning is explained by traders chasing the euro's rally, Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets in New York, said. "People are also positioning long in euro because they think the European Central Bank is going to take another taper step in June, which I personally think is not going to happen," he said. Fading political risks and a stronger economy have fueled talk that the ECB may scale back its massive monetary stimulus. Euro zone economic growth may be improving, and ECB policy will reflect this, but inflation remains weak so there is no need to deviate from the policy path already laid out, top ECB policymakers said on Wednesday. "It's been a tough year for FX speculators and they are just chasing any momentum they can find. This one is probably going to end in tears," Anderson said. Meanwhile, speculators cut net long U.S. dollar positions to the lowest since the third week in September, data showed. The value of the dollar's net long position fell to $8.32 billion in the week ended May 23, from $13.5 billion the previous week. Worries over U.S. President Donald Trump's recent firing of FBI Director James Comey, and concerns about possible delays in Trump's efforts to implement his economic stimulus plans have pressured the dollar. "For a lot of people the dollar had topped out and the only reason to own it was expectation of tax reform, and if that's not going to happen you might as well get short," said Anderson. "The market is in the middle of making that transition." 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 and Canadian and Australian dollars. Japanese Yen (Contracts of 12,500,000 yen) $5.777 billion 23 May 2017 Prior week week Long 41,920 41,963 Short 93,576 101,971 Net -51,656 -60,008 EURO (Contracts of 125,000 euros) $-9.064 billion 23 May 2017 Prior week week Long 175,032 164,234 Short 110,187 126,630 Net 64,845 37,604 POUND STERLING (Contracts of 62,500 pounds sterling) $1.933 billion 23 May 2017 Prior week week Long 49,166 48,369 Short 73,033 81,364 Net -23,867 -32,995 SWISS FRANC (Contracts of 125,000 Swiss francs) $2.534 billion 23 May 2017 Prior week week Long 6,118 3,946 Short 25,903 25,108 Net -19,785 -21,162 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) $7.334 billion 23 May 2017 Prior week week Long 29,681 39,130 Short 128,790 137,130 Net -99,109 -98,000 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) $-0.197 billion 23 May 2017 Prior week week Long 42,892 52,244 Short 40,257 45,900 Net 2,635 6,344 MEXICAN PESO (Contracts of 500,000 pesos) $-1.458 billion 23 May 2017 Prior week week Long 98,609 92,686 Short 44,311 22,632 Net 54,298 70,054 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) $0.646 billion 23 May 2017 Prior week week Long 14,018 11,918 Short 23,235 23,872 Net -9,217 -11,954 (Reporting by Saqib Iqbal Ahmed; Editing by Meredith Mazzilli)
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