Speculators Turning Into Net USD Shorts, Cutting EUR Shorts By Half
After three consecutive weeks of betting on a stronger USD, speculative traders on the Chicago Mercantile Exchange jumped into an anti-USD wager again, data from the Commodity Futures Trading Commission (CFTC) showed on Friday.
Traders shifted from a total of $6.5 billion in net USD long position as of last week into a total of $818 million in net USD short position as of Tuesday.
In a parallel move, traders continued to cover their EUR bets slashing their short EUR position by 50% after cutting it by another 26% last week to reach a total of $5.5 billion as of Tuesday.
Looking ahead, the USD is likely to come under pressure next week as the Federal Reserve is expected to announce the extension of the $85 billion purchase of securities each month when Operation Twist ends at its meeting on next Wednesday.
CFTC's data also showed that traders increased their open short JPY position by 14% to reach a net of $13.8 billion. Traders also increased their open long AUD position by 21% from a week earlier to reach a net of $9.8 billion.