FX speculators turn long U.S. dollar in latest week-data
NEW YORK, Sept 7 |
NEW YORK, Sept 7 (Reuters) - Currency speculators turned positive on the U.S. dollar in the latest week, according to data from the Commodity Futures Trading Commission released on Friday.
That is a turnaround in sentiment from the previous week when speculators turned negative on the U.S. dollar for the first time in nearly a year.
The value of the U.S. dollar's long position in the week ended Sept. 4 totaled $1.5 billion versus a short position of $441.7 million the previous week. The previous week's dollar position was the first weekly net short since the week of Sept. 6, 2011.
The positioning came ahead of European Central Bank's approval on Thursday of a plan to make unlimited purchases of bonds from debt burdened euro zone countries, a move widely expected by market participants.
The central bank's plan was made to restore confidence in debt markets of Italy and Spain, the euro zone's third and fourth largest economies, respectively.
To be short a currency is to bet it will fall in value, while being long is a view its value will rise.
The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.
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