Currency speculators again raised their net bets on the U.S. dollar for a third week, now at the highest in six weeks, according to one major house calculation. The dollar's net long position was $29.61 billion in the week ended Tuesday, July 16, from $27.94 billion the prior week. Investors have been dollar long since mid-February. Investors were long the dollar against everything but the Mexican peso, according to CFTC data. The major dollar long play was against the yen at 85,762 contracts, followed by the Australian dollar at 70,686 contracts, an elevated level. Total open interest in dollar terms at $73.2 billion was 70.1 percent long dollars, and consequently 29.9 percent short dollars.
The Japanese yen position was through to last Tuesday before trading began based on whether Prime Minister Shinzo Abe will push through reforms to stoke growth and inflation after upper house elections in Japan. The yen on Monday rose against other major currencies when investors had been betting, based on all polls, that Abe would get a ringing endorsement and Abenomics would take over. A bet against the yen was seen as the safe bet and the result only indicates there may never be a safe bet.