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UPDATE 1-Euro net longs rise to most in more than three years -CFTC, Reuters
May 26, 2017 / 8:51 PM / 6 months ago

UPDATE 1-Euro net longs rise to most in more than three years -CFTC, Reuters

 (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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