UPDATE 1-Speculators cut US dlr bets for 2nd week -CFTC, Reuters

Fri Dec 7, 2012 4:24pm EST

NEW YORK, Dec 7 (Reuters) - Currency speculators slashed
bullish bets on the U.S. dollar for a second straight week while
they increased short yen positions to a more than five-year
high, according to data from the Commodity Futures Trading
Commission released on Friday.  
    The value of the dollar's net long position slid to $920.79
million in the week ended Dec. 4 from $8.01 billion the previous
week. This week's net U.S. long dollar position was the smallest
since late October when speculators' greenback shorts totaled
about $710 million.
    To be long a currency is to bet it will rise in value, while
being short is a view its value will decline.
    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. 
    Yen shorts this week hit 90,326 contracts, a more than
five-year peak, from 79,466 shorts the previous week. That
suggests further yen weakness could persist.
    "The market is treating Japan much as it did once Europe,
mainly as an increasingly poor credit, translating also into yen
weakness, and this driven also by potential Bank of Japan
easing," said Sebastien Galy, currency strategist, at Societe
Generale in New York.
    The yen has fallen more than 6 percent against the dollar so
far this year.
    Euro shorts, on the other hand, continued to fall, down to
32,795 contracts this week from shorts of 66,693 previously.
    
    JAPANESE YEN (Contracts of 12,500,000 yen) 13,787,703,016.24
             12/04/12 week         11/27/12 week
   Long          20,929               27,027
   Short        111,255              106,493
   Net          -90,326              -79,466
 
    EURO (Contracts of 125,000 euros) 5,367,311,687.50
             12/04/12 week         11/27/12 week
   Long          48,300               35,799
   Short         81,095              102,492
   Net          -32,795              -66,693
 
    POUND STERLING (Contracts of 62,500 pounds sterling)
-2,744,214,187.50
             12/04/12 week         11/27/12 week
   Long          66,050               51,107
   Short         38,780               40,829
   Net           27,270               10,278
 
    SWISS FRANC (Contracts of 125,000 Swiss francs)
-85,825,326.57
             12/04/12 week         11/27/12 week
   Long          11,722                9,744
   Short         11,086               13,111
   Net              636               -3,367
 
    CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
-5,749,647,390.69
             12/04/12 week         11/27/12 week
   Long          66,356               72,663
   Short          9,285               10,284
   Net           57,071               62,379
 
    AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
-9,654,531,720.00
             12/04/12 week         11/27/12 week
   Long         136,218              122,186
   Short         43,989               45,380
   Net           92,229               76,806
 
    MEXICAN PESO (Contracts of 500,000 pesos) -4,594,972,498.61
             12/04/12 week         11/27/12 week
   Long         126,957              101,490
   Short          7,995                7,632
   Net          118,962               93,858
 
    NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand
dollars) -1,737,018,560.00
             12/04/12 week         11/27/12 week
   Long          23,272               21,653
   Short          2,184                2,943
   Net           21,088               18,710
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