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U.S. dollar net long bets jump to largest since mid-June 2019 -CFTC, Reuters data

  • Euro positioning turns net quick
  • Bitcoin net shorts largest since late July

NEW YORK, Oct 8 (Reuters) – U.S. dollar net longs within the newest week surged to their highest degree in additional than two years, in accordance to Reuters calculations and Commodity Futures Trading Commission data launched on Friday.

The worth of the net long dollar place was $22.89 billion within the week ended Oct. 5, in contrast with $16.37 billion within the earlier week. U.S. dollar positioning has been net long for 12 straight weeks after being net quick for 16 months.

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

In a broader measure of dollar positioning , which incorporates net contracts on the New Zealand dollar, Mexican peso, Brazilian actual and Russian rouble, the dollar posted a net long place of $22.535 billion this week, from $15.33 billion beforehand.

The dollar has been on a tear since the September 21-22 Federal Reserve financial coverage assembly that urged a attainable tapering of the Fed’s asset purchases beginning November this 12 months and ending in June 2022.

Tapering tends to be dollar-positive as a result of the Fed can be shopping for much less debt property, which implies that there shall be much less {dollars} in circulation, making the foreign money extra worthwhile.

Since the September assembly, the dollar index has risen greater than 1%.

The dollar pulled again, nonetheless, on Friday after an underwhelming U.S. non-farm payrolls report. Data confirmed U.S. non-farm payrolls elevated by 194,000 jobs final month, in contrast with forecasts for 500,000 new jobs. But data for August was revised to present 366,000 jobs created as an alternative of the beforehand reported 235,000 positions. learn extra

“U.S. inflation data released next Wednesday may add to evidence that inflationary pressures are proving less ‘transitory’ than generally anticipated,” wrote Jonathan Petersen, markets economist, at Capital Economics in its newest analysis notice.

“Our view remains that this will push U.S. yields and the dollar a bit higher in the coming months.”

In different contracts, euro positioning turned quick within the newest week with net quick contracts of twenty-two,334, from a net long place of 872 the earlier week. The euro stays a laggard amongst G10 currencies, weighed down by the European Central financial institution’s dovish stance.

In the cryptocurrency market, bitcoin net shorts totaled 1,518 contracts within the week ended Oct. 5, from net quick contracts of 883 the earlier week. This week’s net quick contracts in bitcoin have been the largest since late July.

That stated, bitcoin on Friday soared to a five-month excessive of $56,168 , boosted by continued institutional demand, gaining some legitimacy amongst traders.

Since a low of $28,600 hit in June, bitcoin has gained 87.5%.

Japanese Yen (Contracts of 12,500,000 yen)

$7.144 billion

EURO (Contracts of 125,000 euros)

$3.237 billion

POUND STERLING (Contracts of 62,500 kilos sterling)

$1.705 billion

SWISS FRANC (Contracts of 125,000 Swiss francs)

$2.113 billion

CANADIAN DOLLAR (Contracts of 100,000 Canadian {dollars})

$2.135 billion

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie {dollars})

$6.56 billion

MEXICAN PESO (Contracts of 500,000 pesos)

$0.866 billion

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand {dollars})

$-0.561 billion

Reporting by Gertrude Chavez-Dreyfuss; Editing by Leslie Adler and Shailesh Kuber

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