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UPDATE 1-Speculators boost bearish bets against dollar -CFTC, Reuters
November 27, 2017 / 9:36 PM / 15 days ago

UPDATE 1-Speculators boost bearish bets against dollar -CFTC, Reuters

 (Adds details, comments, tabular data, byline)
    By Saqib Iqbal Ahmed
    NEW YORK, Nov 27 (Reuters) - Speculators' net short dollar
bets rose in the latest week after seven straight weeks of
declines, according to calculations by Reuters and Commodity
Futures Trading Commission data released on Monday.
    The value of the net short dollar positions, derived from
net positions of International Monetary Market speculators in
the yen, euro, British pound, Swiss franc and Canadian and
Australian dollars, was $3.15 billion, in the week to Nov. 21.
    That compares with a net short position of $643 million the
previous week and marks the 19th straight week that speculators
have had a net short position on the greenback.
    To be short a currency means traders believe it will fall in
value.
    In a wider measure of dollar positioning that
includes net contracts on the New Zealand dollar, Mexican peso,
Brazilian real and Russian ruble, the U.S. dollar posted a net
short position valued at $5.23 billion, up from $2.41 billion a
week earlier.
    "That's pretty consistent with the movement that we have
been seen in the dollar. It has been trending weaker for pretty
much most of the month of November," Sireen Harajli, FX
strategist at Mizuho in New York.
    "There is a lot of uncertainty surrounding tax legislation
and the way forward," she said.
    On Monday, President Donald Trump summoned Senate Republican
tax writers to the White House to urge passage of a sweeping tax
bill that congressional fiscal analysts said separately would
balloon the federal budget deficit by $1.4 trillion over a
decade.
    Investors are focused on lawmakers' efforts to overhaul the
U.S. tax code and are closely tracking developments around the
tax bill.
    Worries about potential delays in the implementation of tax
cuts and the possibility of proposals being weakened have
weighed on the dollar.
    The dollar index, which measures the greenback
against six rival currencies, has slipped 1.7 percent so far in
November.
    A Dec. 8 deadline for extending government funding is also
raising concerns about a possible government shutdown, Harajli
said.
    Meanwhile, the net short position on the Swiss franc was at
29,740 contracts, the largest since June 2012, the data showed.
    The Swiss National Bank has been selling francs for foreign
currency in vast amounts for years to keep a lid on the soaring
currency, whose rise has spelt danger for Switzerland's
export-reliant economy.
    "It's very difficult to go long a currency if you don't
think there is true upside," Harajli said.
    
Japanese Yen (Contracts of 12,500,000 yen) 
 $13.631 billion
         24 Nov 2017            Prior week
         week             
 Long             44,382            49,347
 Short           166,984           185,346
 Net            -122,602          -135,999
 
EURO (Contracts of 125,000 euros)
 $-14.002 billion
         24 Nov 2017            Prior week
         week             
 Long            195,909           200,023
 Short           100,472           115,437
 Net              95,437            84,586
 
POUND STERLING (Contracts of 62,500 pounds sterling)
 $0.025 billion
         24 Nov 2017           Prior week
         week             
 Long             58,358           53,147
 Short            58,658           57,680
 Net                -300           -4,533
 
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $3.75 billion
         24 Nov 2017           Prior week
         week             
 Long             20,821           19,470
 Short            50,561           47,453
 Net             -29,740          -27,983
 
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $-3.532 billion
         24 Nov 2017           Prior week
         week             
 Long             67,324           70,473
 Short            22,199           23,138
 Net              45,125           47,335
 
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $-3.017 billion 
         24 Nov 2017           Prior week
         week             
 Long             78,134           73,155
 Short            38,317           29,123
 Net              39,817           44,032
 
MEXICAN PESO (Contracts of 500,000 pesos)
 $-2.141 billion
         24 Nov 2017           Prior week
         week             
 Long            110,044           92,961
 Short            29,658           30,428
 Net              80,386           62,533
 
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $0.915 billion 
         24 Nov 2017           Prior week
         week             
 Long             22,489           18,146
 Short            35,883           30,037
 Net             -13,394          -11,891
 
 (Reporting by Saqib Iqbal Ahmed; Editing by Tom Brown and Grant
McCool)
  

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