FX speculators reversed four weeks of net short bets against the U.S. dollar in the latest week, using data released by the Commodity Futures Trading Commission released on Friday and one major house calculation.
The value of the dollar's net long position totaled $7.02 billion in the week ended November 5, reversing the net short position of $3.146 billion in the week ended Oct. 29.
It was the first net long U.S. dollar position in four weeks, or since the week of October 1, and the largest net long position since the week of September 17.
It was the first release of CFTC data released as scheduled since the government cleared the back lof of delayed data because of the government shutdown and reflects positioning ahead of the European Central Bank decision to cut their benchmark lending rate.
Investors had halved net long bets on the euro ahead of the meeting to 33,143 net contracts from 70,617 net contracts the week before. Some investors had at least prepared for the possibility of a rate cut or other ECB stimulus indicating not everyone was surprised.
The net position change came mostly in a drop on total long bets on the euro to 103,333 contracts from 136,054 contracts and a small rise in total short bets to 70,190 contracts from 65,437 contracts the week before.