Specs boost US dollar bets to highest since late July-CFTC, Reuters

Reuters

NEW YORK, Jan 17 (Reuters) - Currency speculators increased bets in favor of the U.S. dollar in the latest week to their largest in more than five months, according to data from the Commodity Futures Trading Commission released on Friday.

The value of the dollar's net long position rose to $22.66 billion in the week ended Jan. 14, from $21.11 billion the previous week. This week's long dollar position was the highest since July 30 last year, despite a much weaker-than-expected U.S. non-farm payrolls report released on Jan. 10.

It was the 11th straight long position for the dollar and only goes to show that market participants still expect the Federal Reserve to continue reducing its asset purchases this year, though at a gradual pace. A scale-back in the Fed's bond buying is considered positive for the greenback as it entails reining in the supply of dollars in the market.

To be long a currency is a view it will rise, while being short is a bet its value will decline.

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.

JAPANESE YEN (Contracts of 12,500,000 yen) 14,163,387,715.93

1/14/14 week 1/07/14 week

Long 10,754 11,340

Short 128,820 140,208

Net -118,066 -128,868

EURO (Contracts of 125,000 euros) -1,580,950,425.00

1/14/14 week 1/07/14 week

Long 87,059 88,119

Short 77,813 73,621

Net 9,246 14,498

POUND STERLING (Contracts of 62,500 pounds sterling) -1,146,550,500.00

1/14/14 week 1/07/14 week

Long 54,352 54,679

Short 43,192 36,501

Net 11,160 18,178

SWISS FRANC (Contracts of 125,000 Swiss francs) 407,385,859.93

1/14/14 week 1/07/14 week

Long 12,601 18,813

Short 15,542 14,086

Net -2,941 4,727

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) 6,154,724,913.18

1/14/14 week 1/07/14 week

Long 34,212 30,535

Short 101,557 91,077

Net -67,345 -60,542

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) 4,661,244,080.00

1/14/14 week 1/07/14 week

Long 10,376 14,213

Short 62,364 71,065

Net -51,988 -56,852

MEXICAN PESO (Contracts of 500,000 pesos) -524,149,789.84

1/14/14 week 1/07/14 week

Long 32,495 38,449

Short 18,778 20,842

Net 13,717 17,607

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) -805,749,340.00

1/14/14 week 1/07/14 week

Long 17,539 14,803

Short 7,925 6,937

Net 9,614 7,866

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