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Specs Cut Long Dollar Bets and Short Yen Positions in Latest Week.

Posted by WorldWideMarkets . on Jun 10, 2013 3:49:00 AM
short yen
Speculators cut their long U.S. dollar bets for the first time in five weeks in the latest period, using the Commodity Futures Trading Commission data released on Friday. By one calculation, the net long dollar position fell to $39.12 billion in the week ended Tuesday, June 4, down from $43.77 billion the prior week. Speculators had raised their bets on the U.S. for the same reason as most investors in recent months. Anticipation the Federal Reserve will taper off its stimulus or quantitative easing measures where it buys bonds for its own balance sheet. But some down data saw those expectations fall and Friday’s U.S. jobs data didn’t change anything. The jobs numbers were okay but not enough for the Fed to change course. The other big news on speculators was a cut in Japanese net short positions to 82,744 contracts from 99,769 contracts the week before.  Given the volatility in the yen, that was not unexpected but a sign that for now, some speculators have had enough pain on betting against the yen. Watch this week to see if the trend continues.
 

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