Net long bets on the US dollar slip to the lowest since mid-September 2021 – CFTC, Reuters data

NEW YORK, Jan 21 (Reuters) – Speculators’ net long position in the U.S. dollar fell last week to its lowest level since mid-September 2021, according to Reuters calculations and data from U.S. Commodity Futures Trading Commission published on Friday.

The value of the net long position in dollars fell to $12.59 billion for the week ended January 18, from $19.34 billion the previous week.

Scotiabank, in its report after the release of the CFTC data, said it was one of the biggest weekly declines in dollar long positioning since mid-2020.

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The US dollar positioning was driven by net contracts by international money market speculators in the Japanese yen, euro, British pound, Swiss franc, as well as Canadian and Australian dollars.

In a broader measure of dollar positioning, which includes net contracts in the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net long position of $13.028 billion this week. , up from $19.906 billion the previous week.

“Investors were gripped by a sudden, and perhaps short-lived, given subsequent developments, enthusiasm for the euro last week as the spot euro showed some fleeting strength and tested lows. close to $1.15,” Shaun Osborne, Scotia’s chief currency strategist, said in the report.

Data showed EUR net longs hit 24,584 contracts this week, down from 6,005 the previous week.

In the case of the dollar, rising Treasury yields have not boosted the greenback as much, with many investors believing that most of the Federal Reserve’s recent aggressiveness has already been priced in.

So far this year, the dollar index has held steady even as 10-year US Treasury yields have risen 20 basis points. The benchmark yield was last at 1.7705%.

In cryptocurrencies, net short positions in bitcoin futures fell to 549 contracts this week from 377 the previous week. The latter was the smallest net short since late September.

Overall, bitcoin and crypto sentiment was fragile for most of the month as investors moved away from riskier assets ahead of next week’s Federal Reserve meeting, which is expected to signal an increase in prices. interest rate in March.

The world’s largest digital currency has also been affected by the news that Russia has proposed to ban the use and mining of cryptocurrencies. Read more

Bitcoin was last down 10% at $36,660, having earlier fallen to a six-month low. Since the beginning of the year, bitcoin has lost 20% of its value against the dollar.

Japanese yen (12,500,000 yen contracts)

$8.821 billion

EURO (125,000 euro contracts)

-3.48 billion dollars

POUND STERLING (Contracts of £62,500)

$0.021 billion

SWISS FRANC (Contracts of 125,000 Swiss francs)

$1.473 billion

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

-0.599 billion dollars

AUSTRALIAN DOLLAR (Australian $100,000 contracts)

$6.353 billion

MEXICAN PESO (500,000 peso contracts)

-0.121 billion dollars

NEW ZEALAND DOLLAR (100,000 New Zealand Dollar Contracts)

$0.564 billion

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Reporting by Gertrude Chavez-Dreyfuss Editing by Chris Reese and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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