Markets News

UPDATE 1-Speculators shrink net long U.S. dollar bets -CFTC, Reuters

 (Adds paragraphs on earnings, Swiss franc, euro, historical
data, table)
    By Kate Duguid
    NEW YORK, Oct 19 (Reuters) - Speculators' net long bets on
the U.S. dollar shrank in the latest week, to be slightly down
from a 22-month high hit in the prior period, according to
calculations by Reuters and the Commodity Futures Trading
Commission released on Friday.
    The value of the net long dollar position was $27.64 billion
in the week ended Oct. 16, down from $27.79 billion in the
previous week.
    Speculators have been net long the dollar for 18 consecutive
    U.S. dollar positioning was derived from net contracts of
International Monetary Market speculators in the yen, euro,
British pound, Swiss franc and Canadian and Australian dollars.
    Long bets on the dollar fell for the first time since early
September as risk sentiment improved in the first half of the
week after upbeat Wall Street earnings turned global sentiment
away from safe-haven assets. The CFTC data measures positioning
from Tuesday to Tuesday, so the rise of the dollar index,
which measures the greenback against a basket of six rival
currencies, in the second half of the week will register in next
Friday's data. 
    At the start of the week, U.S. exchanges opened higher, led
by technology stocks, as earnings from blue-chip companies
helped ease jitters over the impact of an ongoing U.S.-China
trade war and other global issues on corporate profits.

    The improved risk appetite was also evident in speculative
positions in the safe-haven Swiss franc. Net short
positions in the franc increased for the first time since August
to minus 16,524 from minus 12,803 the week prior. 
    Net short positions in the euro were the largest
since March 2017 at minus 29,344 versus minus 16,142 the week
prior. The euro was on the back foot early this week after the
Italian cabinet on Monday signed off on an expansionary 2019
budget to set up a showdown with authorities in Brussels over
compliance with EU rules.

    Japanese Yen (Contracts of 12,500,000 yen) 
 $11.205 billion
         16 Oct 2018            Prior week
 Long             30,096            47,034
 Short           130,717           162,235
 Net            -100,621          -115,201
EURO (Contracts of 125,000 euros)
 $4.245 billion
         16 Oct 2018            Prior week
 Long            140,817           162,315
 Short           170,161           178,457
 Net             -29,344           -16,142
POUND STERLING (Contracts of 62,500 pounds sterling)
 $4.149 billion
         16 Oct 2018           Prior week
 Long             32,153           30,186
 Short            82,506           90,693
 Net             -50,353          -60,507
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $2.085 billion
         16 Oct 2018           Prior week
 Long             13,505           14,990
 Short            30,029           27,793
 Net             -16,524          -12,803
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $0.852 billion
         16 Oct 2018           Prior week
 Long             32,202           38,867
 Short            43,221           51,012
 Net             -11,019          -12,145
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $5.104 billion 
         16 Oct 2018           Prior week
 Long             19,849           25,596
 Short            91,340           98,880
 Net             -71,491          -73,284
MEXICAN PESO (Contracts of 500,000 pesos)
 $-1.829 billion
         16 Oct 2018           Prior week
 Long            127,324          126,813
 Short            58,749           52,364
 Net              68,575           74,449
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $2.331 billion 
         16 Oct 2018           Prior week
 Long             11,136           15,418
 Short            46,548           49,238
 Net             -35,412          -33,820

 (Reporting by Kate Duguid
Editing by Paul Simao and James Dalgleish)