US $ Net Long Bet Jumps Largest Since Mid-June 2019: CFTC

New York — The US dollar netlong surged to its highest level in more than two years last week, according to Reuters calculations and Commodity Futures Trading Commission data released Friday.

The value of the net long dollar position for the week ending October 5 was $ 22.89 billion, compared to $ 16.37 billion last week. The US dollar positioning has been net long for 12 consecutive weeks after a net short for 16 months.

The US dollar positioning was derived from the net contracts of international monetary market speculators in the Japanese yen, euro, British pound, Swiss franc, and Canadian and Australian dollars.

In a broader index of dollar positions, including net contracts for the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, Greenback recorded a net long position of $ 22.535 billion this week, up from a previous $ 15.33 billion.

The dollar has been torn since the Federal Reserve’s monetary policy meeting on September 21-22, suggesting the possibility of a tapering of Fed asset purchases starting in November this year and ending in June 2022.

Federal Reserve Building
The Federal Reserve Building was set up on May 1, 2020 against the blue sky of Washington. (Kevin Lamarck / Reuters)

It tends to taper as the Fed buys fewer debt assets. This means that less dollars will circulate and the value of the currency will increase.

The dollar index has risen by more than 1% since the September meeting.

However, the dollar fell on Friday following reports of an overwhelming number of non-farm payrolls in the United States. Data show that the number of non-farm payrolls in the United States increased by 194,000 last month compared to a forecast of 500,000 new jobs. However, the August data has been revised to indicate that 366,000 jobs have been created in place of the previously reported 235,000 positions.

“U.S. inflation data released next Wednesday is less” temporary “than expected inflationary pressure,” said Jonathan Peters, a market economist at Capital Economics, in a recent research note. We may add evidence that it proves that. “

“This does not change the view that US yields and the dollar will rise slightly in the coming months.”

Under other contracts, the euro position went short last week with 22,334 net short positions from 872 net long positions last week. The euro is still lagging behind in the G10 currency, squeezed by the dovish stance of the European Central Bank.

Epoch Times Photo
The Euro logo will appear in front of the European Central Bank (ECB) in Frankfurt Ammine, Germany on January 10 (Daniel Rowland / AFP via Getty Images).

In the cryptocurrency market, Bitcoin’s net shorts went from 883 net shorts last week to a total of 1,518 contracts in the week ending October 5. This week’s Bitcoin net short contract was the largest since late July.

That said, Bitcoin on Friday gained some legitimacy among investors, boosted by continued institutional demand and soared to a five-month high of $ 56,168. ..

Bitcoin has risen 87.5% since the low of $ 28,600 in June.

JPY (12,500,000 yen contract)

$ 7,144 million

October 5, 2021 Previous week


Long 31,56935,328

Short 95,263 100,088

Net — 63,694-64,760

EUR (Contract of 125,000 euros)

$ 3,237 million

October 5, 2021 Previous week


Long 196,819195,043

Short 219,153 194,171

Net-22,334 872

Euro banknotes
On August 1, 2016, a 20 euro banknote can be seen in the photo illustration. (RegisDuvignau / Illustration / Reuters)

GBP (Pound 62,500 contract)

$ 1.75 billion

October 5, 2021 Previous week


Long 48,13757,923

Short 68,15555,959

Net — 20,018 1,964

Swiss franc (Contract of CHF 125,000)

$ 2,113 million

October 5, 2021 Previous week


Long 2,2746,734

Short 17,95318,321


Canadian Dollar (Contract of 100,000 Canadian dollars)

$ 2,135 million

October 5, 2021 Previous week


Long 18,58021,873

Short 45,44642,108

Net — 26,866-20,235

Canadian dollar coin, rooney
The Canadian dollar coin, commonly known as the “Looney,” is depicted in this illustrated photo taken on January 23, 2015 in Toronto, Ontario, Canada. (MarkBlinch / Reuters)

Australian dollar (AUD 100,000 contract)

$ 6.56 billion

October 5, 2021 Previous week


Long 17,47118,407

Short 107,450 104,790

Net — 89,979 — 86,383

Mexican peso (Contract of 500,000 pesos)

$ 866 million

October 5, 2021 Previous week


Long 77,07492,423

Short 112,653 112,018

Net — 35,579-19,595

New Zealand dollar (New Zealand $ 100,000 contract)

$ 561 million

October 5, 2021 Previous week


Long 17,88718,324

Short 9,8318,078

Net 8,05610,246

Gertrude Chavez-by Dreyfuss