November 28, 2016 / 9:45 PM / in a year

UPDATE 1-U.S. dollar net longs rise in latest week on rates view-CFTC, Reuters data

(New throughout, adds comment, details, table, byline)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, Nov 28 (Reuters) - Speculators increased positive
bets on the U.S. dollar in the latest week, as investors resumed
buying the greenback on continued expectations of U.S. interest
rate hikes from the Federal Reserve.
    The value of the dollar's net long position rose to $22.25
billion in the week ended Nov. 22, from $20.87 billion the
previous week, according to Reuters calculations and data from
the Commodity Futures Trading Commission released on Monday.
    The dollar has been rising on expectations that U.S.
President-elect Donald Trump will boost infrastructure and
government spending, elevating inflation and compelling the Fed
to raise interest rates.
    Since Trump's victory early this month, the dollar index has
bounced nearly 6 percent.
    "The big question is less about whether the Fed will raise
interest rates in December, and much more about what the pace of
rate hikes may likely be after December, especially with
Trump-driven inflation expected to rise," said James Chen, head
of research at in Bedminster, New Jersey.
    "Therefore, while pullbacks are to be expected within the
dollar's continued climb, the greenback remains well-supported
by anticipation of increasing interest rates."
    Japanese yen net longs fell for a third straight week to
10,900 contracts, the lowest since early January.
    The yen has been one of the main casualties of the dollar's
recent surge, with the Japanese currency dropping nearly 10
percent since Trump's win.
    Chen said investors' persistent appetite for risk after this
month's surprise U.S. election outcome has weighed on the
safe-haven yen. 
    "Rising stock markets have severely diminished the appeal of
safe-havens like the yen and gold, which have both seen
precipitous drops in value within the past few weeks," he added.
    Sterling net shorts fell for a second straight week to
74,318 contracts, the smallest since September.
    The British pound pulled back a little bit on Monday, but
was on track for its biggest monthly gain against the dollar
since March. 
    The U.K. economy has proven to be resilient following the
country's decision to exit the European Union in June. It grew
0.5 percent in the third quarter, helped by a rebound in exports
and robust household spending. 
   The Reuters calculation for the aggregate U.S. dollar
position is derived from net positions of International Monetary
Market speculators in the yen, euro, sterling, Swiss franc and
Canadian and Australian dollars.
Japanese Yen (Contracts of 12,500,000 yen) 
 $-1.226 billion
         25 Nov 2016            Prior week
 Long             71,183            67,085
 Short            60,283            46,409
 Net              10,900            20,676
EURO (Contracts of 125,000 euros)
 $15.849 billion
         25 Nov 2016            Prior week
 Long            127,122           121,575
 Short           246,470           240,757
 Net            -119,348          -119,182
POUND STERLING (Contracts of 62,500 pounds sterling)
 $5.77 billion
         25 Nov 2016           Prior week
 Long             54,209           54,241
 Short           128,527          134,554
 Net             -74,318          -80,313
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $2.832 billion
         25 Nov 2016           Prior week
 Long              9,515            7,005
 Short            32,415           29,199
 Net             -22,900          -22,194
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $1.299 billion
         25 Nov 2016           Prior week
 Long             28,260           34,293
 Short            45,722           52,892
 Net             -17,462          -18,599
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $-2.272 billion 
         25 Nov 2016           Prior week
 Long             63,488           77,814
 Short            32,783           36,296
 Net              30,705           41,518
MEXICAN PESO (Contracts of 500,000 pesos)
 $1.174 billion
         25 Nov 2016           Prior week
 Long             19,884           22,124
 Short            68,198           67,277
 Net             -48,314          -45,153
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $0.038 billion 
         25 Nov 2016           Prior week
 Long             31,779           33,547
 Short            32,312           31,504
 Net                -533            2,043
 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu
Nomiyama and David Gregorio)
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