Stock Groups

U.S. dollar net long bets jump to largest since mid-June 2019 -CFTC, Reuters data By Reuters


© Reuters. FILE PHOTO – A photo illustration of U.S. $100 banknotes taken in Tokyo on August 2, 2011. REUTERS/Yuriko Nakao/File Photograph

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters), U.S. Dollar net longs rose to the highest point in two years in the most recent week, according to Reuters calculations.

In the week ending Oct. 5, the value of the net-long dollar position reached $22.89 trillion, compared to $16.37 billion the week before. After being net short for 16 consecutive months, the U.S. dollar position has now been net long 12 weeks in a row.

U.S. dollar position was calculated from net contracts in international Monetary Market speculators for the Japanese yen and euro as well as Canadian and Australian dollars.

A wider measure of dollar position, including net contracts on the New Zealand Dollar, Mexican Peso, Brazilian Real, and Russian Ruble, shows that the greenback has a net long position at $22.535 billion, up from $15.33 trillion previously.

Dollar has been on the rise since September 21-22 Federal Reserve Monetary Policy Meeting that suggested possible tapering in Fed asset purchases, starting November of this year and ending June 2022.

Because the Fed will buy less assets of debt, tapering tends to be dollar positive. This means there will be fewer dollars in circulation which makes the currency more valued.

The index has more than doubled since September’s meeting.

However, Friday’s disappointing U.S. nonfarm payrolls report saw the dollar pull back. According to data, the U.S.’s nonfarm payrolls grew by 194,000 jobs in August, which was higher than what had been expected for 500,000. However, August data was updated to reflect that 366,000 new jobs were created rather than the 235,000 previously reported.

According to Capital Economics, Jonathan Petersen (markets economist at Capital Economics), “U.S. Inflation Data Released Next Wednesday May Add To Evidence That Inflationary Pressures Are proving Less ‘Transitory’ Than Generally Accused,” Capital Economics published its most recent research note.

Our view is that these will drive U.S. yields higher and the dollar slightly higher over the next months.

The euro position in other contracts turned short last week. It now has net short contracts totalling 22,334, down from 872 net long positions the previous week. Due to the dovish European Central bank’s stance, the euro is still a trailblazer among G10 currencies.

From net short contracts totaling 883 in the previous week, the bitcoin market saw net shorts of 1,518 contracts for the week that ended October 5. These net short bitcoin contracts were the most significant since late July.

Bitcoin rose to $56,168 Friday on the back of continued institutional demand. This helped it gain legitimacy with investors.

Bitcoin has experienced an 87.5% increase since June’s low at $28,600.

Japanese Yen (Contracts up to 12,500,000 yen).

$7.144 trillion

Prior Week 05 October 2021


Long 31,569 35.328

Short 95 263 100,088

Net -63.694 -64.760

EURO (Contracts up to 125,000 euro)

$3.237 trillion

Prior Week 05 October 2021


Long 196.819 195.043

Short 219 153 194,171

Net -22.334 872

POUNDSTERLING (Contracts for 62,500 Pounds Sterling)

$1.75 billion

Prior Week 05 October 2021


Long 48.137 57.923

Short 68.155 55.959

Net -20.018 1.964

SWISSFRANC (Contracts for 125,000 Swiss Francs

$2.113 Billion

Prior Week 05 October 2021


2274, 6,734

Short 17953 18321

Net -15.679 -11.587

CANADIAN DOLLAR – Contracts worth 100,000 Canadian dollars

$2.135 trillion

Prior Week 05 October 2021


Long 18,580 21873

Short 45,446 41,108

Net -26.866 -20.235

AUSTRALIAN DOLLAR (Contracts up to 100,000 Dollars)

$6.56 trillion

Prior Week 05 October 2021


Long 17,471 18407

Short 107.450 104.790

Net -89.979, 86.383

MEXICAN PESO (Contracts worth 500,000 pesos

$0.866 billion

Prior Week 05 October 2021


Long 77.074 92.423

Short 112,653 12,018

Net -35 579 -19,595

NEW ZEALAND DOLLAR (Contracts for 100,000 New Zealand Dollars)

$-0.561 Billion

Prior Week 05 October 2021


Long 17,887 18,324

983 1 8078

Net 8.056 10.246