May 29, 2020 / 8:34 PM / a month ago

Speculators increase short dollar bets, CFTC data, Reuters calculations show

FILE PHOTO: A woman counts U.S. dollar banknotes as Lebanese pounds are pictured in the background at a currency exchange shop in Beirut, Lebanon April 3, 2020. REUTERS/Mohamed Azakir

NEW YORK (Reuters) - Speculators’ net bearish bets on the U.S. dollar increased in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The net short dollar position was $8.60 billion for the week ended May 26, compared with a net short position of $7.66 billion for the week before that.

U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc and Canadian and Australian dollars.

Traders who are long on a currency believe it will rise in value, while being short points to a bearish bias.

In a wider measure of dollar positioning NETUSDALL= that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the U.S. dollar posted a net short of $7.82 billion, up from $6.58 billion a week earlier.

The U.S. dollar index =USD, which weighs the currency against a basket of six rivals has fallen 1.47% this week as risk sentiment has improved, sending U.S. stock indexes higher, and denting the greenback’s safe-haven appeal. The biggest daily drop this week was recorded on Tuesday, the end of the seven-day period from which the CFTC drew this week’s data.

The dollar’s move lower since Wednesday will be reflected in next week’s CFTC data, unless the trend is reversed before next Tuesday.

Reporting by Kate Duguid; Editing by Paul Simao

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below