(Table added, analyst comment, bitcoin futures) By Gertrude Chavez-Dreyfuss NEW YORK, May 28 (Reuters) – Net shorts in US dollars soared this week to the highest level since late February, according to Reuters calculations and data from the Commodity Futures Trading Commission released Friday. The net short position in dollars was $ 27.89 billion in the week ended May 25, after net sales of $ 15.07 billion the week before. Net short contracts in US dollars increased for a sixth consecutive week. The positioning of the US dollar was derived from the net contracts of international money market speculators on the Japanese yen, the euro, the pound sterling and the Swiss franc, as well as the Canadian and Australian dollars. In a broader measure of dollar positions that includes net contracts in the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net short position of $ 17.052 billion this week, against net shorts of $ 15.63 billion the week before. The dollar’s net short positioning swelled again after it became clear that the Federal Reserve would maintain its super-easy monetary policy for some time despite signs of mounting inflationary pressure. On Friday, data showed that core inflation in the 12 months leading up to April, as measured by the personal consumption expenditure price index (PCE), excluding the volatile components of food and energy, climbed to 3.1%, well above the Fed’s 2% target. The Fed viewed the price hike as transitory amid an economic reopening that saw an increase in COVID-19 vaccinations. The US central bank’s take on inflation stalled yields rising, weighing on the dollar. Since the end of March, the dollar has lost almost 4% of its value against a basket of currencies. It has also tracked the decline in yields during this period, with the US 10-year benchmark yield falling almost 20 basis points since the end of March. “Currency traders are turning more negative on the broader outlook for the US dollar again,” Scotiabank said in a research note released after the CFTC data. The Canadian bank also highlighted the sharp increase in net long positions in gold, gaining $ 3.6 billion to return to late February levels, “which is actually another manifestation of the broader decline in the US dollar. “. In the cryptocurrency market, bitcoin’s net shorts fell to 1,672 contracts against net shorts of 959 during the week ended May 18, which was the smallest net short since the end of March. from last year. Bitcoin’s gains have slowed this year, after China embarked on a crackdown on cryptocurrency trading and mining. Investors have also looked to other digital currencies such as ether, the digital token of the Ethereum blockchain, for exposure to crypto. Since hitting a record high of just under $ 65,000 on April 14, bitcoin has fallen by about 46%. Bitcoin was down 7% to $ 35,920 on Friday. Japanese Yen (Contracts of 12,500,000 yen) $ 5.765 billion May 25, 2021 Previous week Long week 24,163 24,965 Short 74.319 75,913 Net -50,156 -50,948 EURO (Contracts of 125,000 euros) -15.925 billion May 25, 2021 Previous week Long 236,103 232,330 Short circuit 132,103 132,472 Net 104,000 99,858 POUND STERLING (Contracts of £ 62,500) – $ 2.712 billion May 25, 2021 Previous week Long week 64,193 63,027 Short 33,534 38,127 Net 30,659 24,900 SWISS FRANC (Contracts of 125,000 Swiss francs) $ 0.168 billion May 25, 2021 Week previous Long week 12,223 11,115 Short 13.426 15,380 Net -1203 -4265 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) -3.715 billion dollars May 25, 2021 Previous week Long week 84,183 82026 Short 39,372 35,914 Net 44,811 46,112 AUSTRALIAN DOLLAR (Contracts of 100,000 Australian dollars ) $ 0.063 billion May 25, 2021 Previous week Long week 55,098 57,862 Short 55,907 54,860 Net -809 3002 MEXICAN PESO (Contracts of 500,000 pesos) $ 0.213 billion May 25, 2021 Previous week Long week 63,868 62.25 1 Short 72,366 72,369 Net -8,498 -10,118 NEW ZEALAND DOLLAR (NZ $ 100,000 contracts) – $ 0.62 billion May 25, 2021 Previous week Long week 24,446 23,624 Short 15,861 15,174 Net 8,585 8,450 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Leslie Adler and Sonya Hepinstall)



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