NEW YORK (Reuters) – Speculators’ net long bets on the US dollar were reduced last week, according to Reuters calculations and US Commodity Futures Trading Commission data released on Friday.

The value of the net long position in dollars was $ 2.11 billion for the week ended August 3, compared to a net long position of $ 2.99 billion for the previous week.

The US dollar positioning was derived from the net contracts of international money market speculators in Japanese yen, euros, pounds sterling, Swiss francs, and Canadian and Australian dollars.

The latest data only marked the third week since March 2020 that speculators reported a net long position in the dollar.

In a broader measure of the dollar’s positioning which includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net decline of $ 1.92 billion, against $ 2.88 billion a week earlier.

The dollar – which had rallied sharply since late May on strong US data and a shift in interest rate expectations, only to run out of steam in recent sessions – rose sharply on Friday, after a strong report on employment in the United States.

“A heavy hiring could mean hawkish hints from the Fed at its late-August summit of global central bankers in Jackson Hole, Wyoming,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, in a note.

For investors who assess improving economic data and a potential decrease in asset purchases on the one hand and concerns over the growing spread of the Delta variant of the coronavirus on the other, Friday’s data may help to tip the scales, said Michael Brown, senior analyst at payments company Caxton in London.

“It should definitely tip the scales towards the former, as it will raise expectations of a hawkish pivot from Powell to Jackson Hole and raise expectations for the September FOMC,” he said.

(Reporting by Saqib Iqbal Ahmed; Editing by Leslie Adler and Sandra Maler)

Copyright 2021 Thomson Reuters.

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