(Adds table, comment, byline, details on dollar, euro, Mexican peso contracts) By Gertrude Chavez-Dreyfuss Jan 13 (Reuters) - Speculators pared back net long bets on the U.S. dollar in the latest week, as investors reduced positions that have become overextended due to a rally inspired by Donald Trump's victory in the U.S. presidential election two months ago. The value of the dollar's net long position was $24.95 billion in the week ended Jan. 10, from $25.43 billion the previous week, according to data from the Commodity Futures Trading Commission and calculations by Reuters. The dollar this week posted its worst weekly performance since November as the positive effect of Trump on the market seems to be fading. At Wednesday's first press briefing before his inauguration next week, Trump failed to provide details on his much-touted fiscal stimulus plan of increased infrastructure spending and tax cuts. That disappointed stock and dollar bulls that had rallied on those themes. The dollar struggled as a result, but market participants said the currency's downdraft was temporary. "We do expect a return of dollar strength, with next week possibly providing the pivot point," said John Hardy, head of FX strategy, at Saxo Bank in Copenhagen. "We move toward Donald Trump's inauguration on Friday as we still anticipate the Fed may hike again...already in March as Trump moves forward with an aggressive stimulus program. That will bring U.S. rates higher." Net short contracts on the euro, meanwhile, fell to 65,823, the lowest level since late June. The outlook on the euro, however, remained less upbeat than the dollar. The European Central Bank is still doing massive quantitative easing and the region still faces considerable political risks. Next week will be crucial for the euro as the ECB meets and its president Mario Draghi holds a press conference. ECB minutes showed that the December meeting's decision to extend quantitative easing to the end of the year was met with some resistance by a few ECB members. The Mexican peso short contracts, on the other hand, rose in the latest week to 71,776, the largest since early October. The peso has been the most sensitive to comments from Trump. His continued assault on Mexico in terms of immigration jobs has damaged the peso, which has fallen to record low. The Reuters calculation for the aggregate U.S. dollar position is derived from net positions of International Monetary speculators in the yen, euro, British pound, Swiss franc and Canadian and Australian dollars. Japanese Yen (Contracts of 12,500,000 yen) $8.621 billion 10 Jan 2017 Prior week week Long 26,041 37,962 Short 105,880 124,726 Net -79,839 -86,764 EURO (Contracts of 125,000 euros) $8.683 billion 10 Jan 2017 Prior week week Long 134,747 129,701 Short 200,570 199,757 Net -65,823 -70,056 POUND STERLING (Contracts of 62,500 pounds sterling) $5.01 billion 10 Jan 2017 Prior week week Long 56,742 55,482 Short 122,573 120,224 Net -65,831 -64,742 SWISS FRANC (Contracts of 125,000 Swiss francs) $1.752 billion 10 Jan 2017 Prior week week Long 10,012 11,813 Short 24,258 25,252 Net -14,246 -13,439 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) $0.6 billion 10 Jan 2017 Prior week week Long 28,405 39,546 Short 36,340 43,417 Net -7,935 -3,871 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) $0.283 billion 10 Jan 2017 Prior week week Long 40,782 47,948 Short 44,630 51,204 Net -3,848 -3,256 MEXICAN PESO (Contracts of 500,000 pesos) $1.646 billion 10 Jan 2017 Prior week week Long 23,878 22,279 Short 95,654 87,915 Net -71,776 -65,636 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) $0.976 billion 10 Jan 2017 Prior week week Long 22,989 25,522 Short 36,949 36,935 Net -13,960 -11,413 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama and Lisa Shumaker)
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