UPDATE 1-Speculators go long on US dollar, 1st time since Sept

Fri Nov 9, 2012 4:25pm EST

Nov 9 (Reuters) - Currency speculators favored the U.S.
dollar in the latest week for the first time since early
September, according to data from the Commodity Futures Trading
Commission released on Fri day. 
    The value of the dollar's net long position totaled $1.296
billion in the week ended Nov. 6, from net shorts of around $710
million the previous week. It was the first net long position
for the greenback in two months. 
    To be long a currency is to bet it will increase in value,
while being short is a view its value will decline.
    The dollar has been a major beneficiary of safe-haven flows
as worries about Europe came to the fore once again.
Expectations about slower growth in Germany and uncertainty
about whether Spain would seek a bailout or not have weighed on
the euro and benefited the dollar.
    In addition, worries over a looming "fiscal cliff" for the
United States, which could trigger tax increases and spending
cuts if not addressed, have also prompted investors to seek the
greenback's safety. 
    "Risk aversion remains firmly entrenched," said Samarjit
Shankar, director of strategy at BNY Mellon in Boston. He cited
BNY Mellon's iFlow FX indicators, which showed that the U.S.
dollar remains steadily net bought.
    In contrast, Shankar said he saw continued outflows from the
euro, which has now been net sold for a sixth successive trading
day.
    The Reuters calculation for the aggregate U.S. dollar
position is derived from net positions of International Monetary
Market speculators in the yen, euro, sterling, Swiss franc,
Canadian and Australian dollars.
    
   JAPAN YEN (Contracts of 12,500,000 yen) 6,239,731,142.64
             11/06/12 week         10/30/12 week
   Long          24,966               19,886
   Short         65,070               56,906
   Net          -40,104              -37,020
 
    EURO (Contracts of 125,000 euros) 10,753,470,412.50
             11/06/12 week         10/30/12 week
   Long          45,212               38,189
   Short        112,353               96,393
   Net          -67,141              -58,204
 
    POUND STERLING (Contracts of 62,500 pounds sterling)
-1,927,297,531.25
             11/06/12 week         10/30/12 week
   Long          57,208               57,897
   Short         37,929               34,494
   Net           19,279               23,403
 
    SWISS FRANC (Contracts of 125,000 Swiss francs)
40,164,369.03
             11/06/12 week         10/30/12 week
   Long          13,509               11,785
   Short         13,812                9,419
   Net             -303                2,366
 
    CANADA DOLLAR (Contracts of 100,000 Canada dollars)
-7,538,011,695.91
             11/06/12 week         10/30/12 week
   Long          82,882               86,306
   Short          8,120                7,535
   Net           74,762               78,771
 
    AUSTRALIA DOLLAR (Contracts of 100,000 Aussie dollars)
-6,290,459,930.00
             11/06/12 week         10/30/12 week
   Long          98,037               91,030
   Short         37,720               38,940
   Net           60,317               52,090
 
    MEXICO PESO (Contracts of 500,000 pesos) -4,414,667,458.89
             11/06/12 week         10/30/12 week
   Long         120,223              130,624
   Short          5,801                4,615
   Net          114,422              126,009
 
    NEW ZEALAND DOLLAR (Contracts of 100,000 NZ dollars)
-1,603,193,720.00
             11/06/12 week         10/30/12 week
   Long          24,440               20,849
   Short          5,052                4,104
   Net           19,388               16,745