Bonds News

UPDATE 1-U.S. dollar net longs little changed vs week ago-CFTC, Reuters data

 (Adds details, table, comment, byline)
    By Gertrude Chavez-Dreyfuss
    April 28 (Reuters) - Net long positions on the U.S. dollar
were near flat from a week earlier, according to calculations by
Reuters and Commodity Futures Trading Commission data released
on Friday.
    The value of the dollar's net long position totaled $15.29
billion in the week ended April 25, down slightly from $15.34
billion the previous week. 
    The dollar failed to gain traction over the last few days,
as U.S. President Donald Trump's tax reform plan underwhelmed
investors and raised doubts about how it could get done. Over
the last two weeks, the dollar index has dropped 1.5
percent and has underperformed for most of the year to date.
    The greenback is expected to be in focus next week ahead of
a slew of events and economic data, including the Federal
Reserve Open Monetary Policy meeting and Friday's U.S. nonfarm
payrolls report. 
    As investors head into a busy week, analysts say the dollar
remains vulnerable.
    "Despite Friday's rally, U.S. data has been terrible," said
Kathy Lien, managing director of FX strategy at BK Asset
Management in New York.
    "There's currently a major misalignment between the
performance of the U.S. economy and the market's expectations
for Fed tightening."
    Net shorts on the Canadian dollar this week ballooned to
42,642 contracts, the largest since early February 2016 as the
United States works to renegotiate the terms of its NAFTA deal
with Canada and Mexico.
    Meanwhile, long positioning on the Mexican peso swelled to
16,038 contracts, the largest since mid-September 2014.
    Net short euro contracts, on the other hand, fell to 20,895
this week. Last week, euro net shorts rose to their highest
since mid-March.
    Euro short positioning has eased after independent centrist
Emmanuel Macron came out ahead of Marine Le Pen, head of the
anti-European Union and anti-immigrant National Front, in the
first round of the French election last weekend.
    "Without the post-election breakout last Sunday, the euro
would not have been this week's best performing currency and
politics should continue to provide the single currency with
support going into the final round of the French election," said
BK's Lien.

Japanese Yen (Contracts of 12,500,000 yen) 
 $3.024 billion
         April 25, 2017    Prior week
 Long            48,538        45,761
 Short           75,407        76,224
 Net            -26,869       -30,463
EURO (Contracts of 125,000 euros)
 $2.853 billion
         April 25, 2017    Prior week
 Long           157,831       185,786
 Short          178,726       207,435
 Net            -20,895       -21,649
POUND STERLING (Contracts of 62,500 pounds sterling)
 $7.317 billion
         April 25, 2017    Prior week
 Long            54,050        48,348
 Short          145,232       147,838
 Net            -91,182       -99,490
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $2.179 billion
         April 25, 2017    Prior week
 Long             7,654        10,830
 Short           24,971        24,632
 Net            -17,317       -13,802
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $3.143 billion
         April 25, 2017    Prior week
 Long            52,545        37,306
 Short           95,187        70,558
 Net            -42,642       -33,252
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $-3.218 billion 
         April 25, 2017    Prior week
 Long            64,684        70,392
 Short           21,982        27,130
 Net             42,702        43,262
MEXICAN PESO (Contracts of 500,000 pesos)
 $-0.425 billion
         April 25, 2017    Prior week
 Long            91,689        97,027
 Short           75,651        82,783
 Net             16,038        14,244
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $1.07 billion 
         April 25, 2017    Prior week
 Long            18,693        18,320
 Short           34,097        33,326
 Net            -15,404       -15,006
 (Reporting by Gertrude Chavez-Dreyfuss; editing by Diane Craft
and Jonathan Oatis)