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US greenback web longs hit their highest degree since early March 2020 – CFTC, Reuters estimate

© Reuters. FILE PHOTO: This May 26, 2020 image shows a US dollar banknote. REUTERS / Dado Ruvic / Illustration

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – According to calculations by Reuters and data released on Friday by the Commodity Futures Trading Commission, net long positions in US dollars rose last week to their highest level since early March last year.

The value of the net long dollar position increased to $ 3.08 billion for the week ended August 10, compared to a net long position of $ 2.11 billion the previous week. The US dollar positioning has been net long for four consecutive weeks after remaining net short for 16 months.

The US dollar positioning was derived from net contracts of speculators in the international currency market in Japanese yen, euros, British pounds sterling and Swiss francs, as well as Canadian and Australian dollars.

On a broader scale of dollar positioning, which includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real, and Russian ruble, the greenback was net long this week at $ 2.993 billion compared to net short – Positions of $ 1.92 billion the previous week.

"Speculative traders have had a modest, aggregated long position in US dollars for a month, but the positioning remains rather light and somewhat non-committal," wrote Shaun Osborne, chief FX strategist at Scotiabank, in a note following the CFTC Data.

"This may reflect easy trading conditions during the northern hemisphere summer, or a desire to wait for more evidence to help build further long US dollar positions. In either case, there is clear scope for the position to grow."

The dollar is up about 0.4% in the past two weeks, helped by safe-have bids amid nagging concerns about the delta coronavirus variant and growing expectations that the Federal Reserve is preparing to soon to announce a curtailment of their security purchases.

A reduction in the Fed's asset purchases is seen as a step towards tighter monetary policy and a positive scenario for the dollar.

In the cryptocurrency market, Bitcoin net shorts fell to 1,104 contracts in the week ending August 10, from net shorts of 1,290 the previous week. This week's bitcoin shorts were the smallest since mid-May.

has rallied in the past two weeks, reaching almost USD 48,000 on Friday, the highest level since mid-May after months of sluggish performance. Bitcoin is up more than 50% from its July 20th low.

A wave of global regulatory crackdowns on the crypto sector has weighed on Bitcoin and other cryptocurrencies this year. Bitcoin has fallen about 32% since hitting an all-time high of just under $ 65,000 in mid-April.

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