U.S. dollar net short position hits highest in three months -CFTC, Reuters data


The value of the net short dollar position rose to $27.89 billion in the week ended May 25, from net shorts of $15.07 billion the previous week. U.S. dollar net short contracts rose for a sixth straight week.

U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound and Swiss franc, as well as the Canadian and Australian dollars.

In a broader measure of dollar positions that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the greenback posted a net short position of $17.052 billion this week, compared with net shorts of $15.63 billion the week before.

Net short dollar positioning swelled again after it became clear that the Federal Reserve will keep its ultra-easy monetary policy stance for some time despite signs of rising inflationary pressure.

On Friday, data…

Read more…