Bonds News

UPDATE 1-Speculators raise long U.S. dollar bets to highest since late January -CFTC, Reuters

 (Adds comment, details, byline, table)
    By Gertrude Chavez-Dreyfuss
    March 17 (Reuters) - Speculators bolstered bullish bets on
the U.S. dollar, pushing net longs to their highest since late
January, according to Commodity Futures Trading Commission data
released on Friday and calculations by Reuters.
    The value of the dollar's net long position totaled $17.59
billion in the week ended March 14, up from $15.26 billion the
previous week. Net long positions on the dollar rose for a third
straight week.
    Net long dollar positioning grew on the expectation of an
interest rate hike in March, which was not the case a few weeks
ago. At the beginning of the year, the market had priced in a
rate increase in June at the earliest.
    Then, a series of comments from Fed officials opened the
possibility of a March rate tightening. The Fed did raise rates
on Wednesday, but the dollar came under pressure when it stuck
to its forecast for three hikes this year.
    Dollar/yen has been particularly vulnerable, falling more
than 2 percent since the Fed hiked rates on Wednesday.
    Analysts said they thought the dollar would bounce back
after a short stumble.
    "The Fed is still the only major central bank planning to
raise interest rates," said Kathy Lien, managing director of FX
strategy at BK Asset Management in New York.
    For dollar/yen, Lien thinks the downside is limited because
a number of Fed officials speaking next week will probably
remind everyone that interest rates are still moving higher.
    Net shorts on the Japanese yen, meanwhile, also rose to
71,297 contracts, the highest since mid-January, data showed.
    The Bank of Japan also held a policy meeting this week and
stuck to its ultra-easing policy. As widely expected, the BOJ
maintained its pledge to cap long-term rates around zero. 
    BOJ Governor Haruhiko Kuroda made clear that the bank would
not follow the Fed's footsteps any time soon, saying Japan still
needed massive monetary support with inflation distant from the
bank's 2 percent target and risks to growth skewed to the
    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
and Canadian and Australian dollars.

Japanese Yen (Contracts of 12,500,000 yen) 
 $7.768 billion
         14 Mar 2017            Prior week
 Long             35,563            39,203
 Short           106,860            93,903
 Net             -71,297           -54,700
EURO (Contracts of 125,000 euros)
 $5.437 billion
         14 Mar 2017            Prior week
 Long            148,272           137,662
 Short           189,299           197,163
 Net             -41,027           -59,501
POUND STERLING (Contracts of 62,500 pounds sterling)
 $8.136 billion
         14 Mar 2017           Prior week
 Long             42,367           61,847
 Short           149,484          143,284
 Net            -107,117          -81,437
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $1.114 billion
         14 Mar 2017           Prior week
 Long             12,950           12,718
 Short            21,947           22,734
 Net              -8,997          -10,016
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $-1.592 billion
         14 Mar 2017           Prior week
 Long             74,620           65,616
 Short            53,162           36,396
 Net              21,458           29,220
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $-3.27 billion 
         14 Mar 2017           Prior week
 Long             73,553           85,221
 Short            30,288           34,243
 Net              43,265           50,978
MEXICAN PESO (Contracts of 500,000 pesos)
 $0.139 billion
         14 Mar 2017           Prior week
 Long             51,271           38,707
 Short            56,738           81,465
 Net              -5,467          -42,758
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $0.388 billion 
         14 Mar 2017           Prior week
 Long             19,509           27,207
 Short            25,114           31,632
 Net              -5,605           -4,425
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Meredith
Mazzilli and David Gregorio)