US Dollar Position Turns Net Sell for First Time Since July 2021 -CFTC, Reuters Data via Reuters


© Reuters. FILE PHOTO: US dollar banknotes are shown in this illustration taken on July 17, 2022. REUTERS/Dado Rović/Illustration/File photo

NEW YORK (Reuters) – U.S. dollar positions turned net short in the latest week for the first time since mid-July 2021, according to Reuters calculations and U.S. Commodity Futures Trading Commission data released on Friday.

The value of net dollar short positions amounted to $10.5 million in the week ending November 15, from net long positions of $2.36 billion in the previous week.

Investors turned bearish in the dollar after the US inflation report released on November 10 supported expectations that the Federal Reserve may slow its hawkish pace. Some analysts said the report was the strongest indication yet that inflation may have turned the corner.

For the month of November, the dollar has so far fallen 4%, at the pace of its largest monthly decline since September 2010.

Meanwhile, the net long position in the euro rose to 112,666 contracts, the largest since June 2021.

“Recent trends have been strongly influenced by aggressive short covering in the euro – especially in the wake of the European Central Bank (ECB) bringing its main policy rate back above zero,” Scotiabank wrote in a research note after the CFTC data.

Barclays (LON:), in a recent research note, raised its year-end forecast in EUR/USD to $1.03, from its previous estimate of $0.97. Going forward, Barclays said the euro is supported by sufficiently improved gas and oil supplies, with shortages not a “risk factor constraining production”.

In the cryptocurrency market, net long positions in bitcoin futures rose to 571 contracts in the week ending November 15, from 18 in the previous week. Net long positions this week were the largest since October 11th.

The collapse of the digital asset exchange has reverberated throughout the cryptocurrency industry. FTX filed for bankruptcy protection in the US last week in the biggest crypto blowout to date. FTX’s implosion came after traders withdrew $6 billion from the platform in three days and rival exchange Binance abandoned the bailout deal.

Japanese yen (lots worth 12,500,000 yen)

6.458 billion dollars

November 15, 2022 the previous week

week

Long 33,797 37,201

Short 99,639 112,459

net -65842 -75258

EURO (125,000 Euro Contracts)

-13.547 billion dollars

November 15, 2022 the previous week

week

long 239,369 232,317

Short 126,703 124,718

Net 112,666 107,599

£62,500 (contracts worth £62,500)

$2.865 billion

November 15, 2022 the previous week

week

Long 34699 36630

Short 67,533 76,365

Net -32834 -39735

Swiss francs (125,000 CHF contracts)

$2.175 billion

November 15, 2022 the previous week

week

long 2271 4865

short 19098 22.019

Net -16827 -17154

Canadian dollars (100,000 Canadian dollars worth of contracts)

1.375 billion dollars

November 15, 2022 the previous week

week

long 37456 39586

Short 50,376 58,050

Net -12920 -18464

Australian dollars ($100,000 worth of contracts)

3.036 billion dollars

November 15, 2022 the previous week

week

Long 33214 33288

Short 77963 79971

Net -44,749 -46,683

Mexican pesos (contracts worth 500,000 pesos)

-1.528 billion dollars

November 15, 2022 the previous week

week

long 197,700 192,024

Short 129,849 132,410

Net 67,851 59,614

New Zealand dollars (100,000 NZD contracts)

$0.379 billion

November 15, 2022 the previous week

week

long 15285 18.085

Short 21,913 24,452

Net -6,628 -6,367