U.S. dollar net long bets still elevated, steady from last week -CFTC, Reuters

    By Gertrude Chavez-Dreyfuss
    NEW YORK, Oct 15 (Reuters) - U.S. dollar net longs were
little changed from the previous week, according to Reuters
calculations and Commodity Futures Trading Commission data
released on Friday, suggesting a still upbeat outlook on the
    The value of the net long dollar position was $22.52 billion
in the week ended Oct. 12, from $22.89 billion in the previous
week. U.S. dollar positioning has been net long for 13 straight
weeks after being net short for 16 months.
    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 positioning,
which includes net contracts on the New Zealand dollar, Mexican
peso, Brazilian real and Russian rouble, the greenback posted a
net long position of $22.197 billion this week, compared with
$22.535 billion previously.
    "Speculative accounts sat back and consolidated positioning
over the course of the past week, following the sharp increase
in aggregate U.S. dollar long position seen in early October,"
Shaun Osborne, chief FX strategist, at Scotiabank wrote after
the CFTC report.
    "The trend reflected price action in the spot market over
the past few days, with profit-taking and position-squaring
dominating trading. Overall data show very little change in net
exposure to the U.S. dollar, however. Investors are sticking
with U.S. dollar longs by and large."
    The dollar has been mainly supported by expectations that
the Federal Reserve will taper its asset purchases next month
under the quantitative easing program. Tapering typically boosts
the greenback, because as the Fed reduces asset purchases, there
are less dollars sloshing around, boosting the currency's value.
    More importantly, traders in the rate futures market have
started to price in a much earlier-than-expected rate hike by
the Fed, as soon as September next year, because of surging U.S.
    Since early September, the dollar index has risen 2.1%
    In the cryptocurrency market, bitcoin net shorts totaled
1,426 contracts in the week ended Oct. 12, from 1,518 net short
contracts the previous week, CFTC data showed.
    On Friday, bitcoin topped $60,000 for the first time in six
months, approaching its all-time peak, amid expectations that
U.S. regulators would allow a futures-based exchange-traded fund
(ETF), a move likely to open the path to wider investment in
digital assets.
    The world's biggest cryptocurrency rose to
$62,944.94, its highest since mid-April, and was last up 7.8% at
$61,930.13. It has risen by more than half since Sept. 20 and is
closing in on its record high of $64,895 hit in April.

Japanese Yen (Contracts of 12,500,000 yen)
 $8.432 billion
         12 Oct 2021            Prior week
 Long             35,810            31,569
 Short           112,444            95,263
 Net             -76,634           -63,694

EURO (Contracts of 125,000 euros)
 $2.651 billion
         12 Oct 2021            Prior week
 Long            202,512           196,819
 Short           220,910           219,153
 Net             -18,398           -22,334

POUND STERLING (Contracts of 62,500 pounds sterling)
 $1.017 billion
         12 Oct 2021           Prior week
 Long             46,794           48,137
 Short            58,773           68,155
 Net             -11,979          -20,018

SWISS FRANC (Contracts of 125,000 Swiss francs)
 $1.742 billion
         12 Oct 2021           Prior week
 Long              3,560            2,274
 Short            16,532           17,953
 Net             -12,972          -15,679

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $2.235 billion
         12 Oct 2021           Prior week
 Long             22,382           18,580
 Short            50,242           45,446
 Net             -27,860          -26,866

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $6.438 billion
         12 Oct 2021           Prior week
 Long             11,193           17,471
 Short            98,801          107,450
 Net             -87,608          -89,979

MEXICAN PESO (Contracts of 500,000 pesos)
 $0.954 billion
         12 Oct 2021           Prior week
 Long             74,129           77,074
 Short           113,763          112,653
 Net             -39,634          -35,579

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $-0.606 billion
         12 Oct 2021           Prior week
 Long             20,467           17,887
 Short            11,719            9,831
 Net               8,748            8,056

 (Reporting by Gertrude Chavez-Dreyfuss; Editing by Leslie Adler
and Alistair Bell)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.