Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

CFTC : Net Euro Long Position $3.2 Billion, Decreases 21%

02/22/2013 | 04:19pm US/Eastern
Recommend:
0
   By Nicole Hong 
 

The net amount of investor cash betting the euro would rise dropped 21% in the past week, government data showed Friday.

As of Feb. 19, investors reduced their net long-euro positions to $3.2 billion, down from $4.1 billion in the previous week, according to the Commodity Futures Trading Commission's weekly report on the commitments of traders.

Investors pulled back on their pro-euro bets after poor economic data from the euro zone pointed to a fragile recovery for the currency bloc. Data last week showed the euro-zone economy plunged deeper into recession in the fourth quarter, shrinking 0.6% between October and December. This was the euro-zone economy's sharpest contraction in nearly four years.

Euro-zone industrial production in the fourth quarter, released Feb. 13, also showed a 2.4% contraction from the previous quarter, its worst reading in three years.

The weak data heightened speculation that the European Central Bank may cut interest rates later this year to stimulate the region's economy. A lower interest rate would hurt the euro because it reduces the appeal of euro-denominated assets.

Meanwhile, investors added to their bets that the yen would drop against the dollar. The net yen short position rose 7.4% last week to $8.8 billion.

The Japanese economy shrank for the third consecutive quarter in the October-December period, according to data released Feb. 14. The poor growth reading reinforced expectations that the Bank of Japan would use aggressive monetary easing measures to boost the economy and pull Japan out of its deflationary spiral.

Investors also pared back bets that the Australian dollar would rise. The net Australian dollar long position fell 18% last week to $4.5 billion.

Overall, investors decreased their net short-dollar positions to $630 million, down 87% from the previous week.

The report tracks the movements of speculators on the Chicago Mercantile Exchange. Although a small part of the global currency markets, these investors' positions are considered indicators of trading among investors like hedge funds. The CFTC's weekly report shows investors' open positions in futures contracts in major currencies held against the dollar.

Write to Nicole Hong at nicole.hong@dowjones.com.

Recommend :
0
React to this article
Latest news
Date Title
<1m agoDJU.S. Durable Orders Up 0.7% in June
<1m agoDJProtests Grow as Fighting in Gaza Rages
2m agoDJMARKET SNAPSHOT : U.S. Stocks: Futures Lower; Amazon Tumbles
2m ago RESEARCH AND MARKETS : Qatar Projects Market Report 2014
3m ago PHARMACYCLICS : European Medicines Agency (EMA) Issues Positive Opinion, Recommends Full Approval of IMBRUVICA® (ibrutinib) for Treatment of Two Blood Cancers
3m agoDJMOL : No Progress in Talks with Croatia on INA
4m ago REED ELSEVIER : Human Resources Director Exercises Options (DIRECTOR DEALINGS)
4m ago NUSTAR GP : Reports Increased EPU in the Second Quarter of 2014
5m ago GLAXOSMITHKLINE : Glaxo To "Thoroughly Investigate" Syria Misconduct Claims
5m ago Plane Survivor Crawls Out Of Fiery Wreckage
Latest news
Advertisement
Hot News 
EUROPLASMA : Annual Shareholders Meeting of 1st September, 2014
CYPROTEX : launches new responsive website www.cyprotex.com
FORBIDDEN TECHNOLOGIES : Forscene Cloud-Editing Platform to Play Bigger Role as IBC TV Expands
LIBERTY MEDIA : plans stock dividend to spin off cable assets
CTAC : Upholding the law: Sindh Police finally gets its vehicles registered
Most Read News
1d ago MASTERCARD : Visa cuts revenue forecast as cross-border transactions slow
1d ago STARBUCKS : sales in Americas region up slightly more than expected
1d ago MOODY : assigns A1 underlying and Aa3 enhanced ratings to Catskill CSD NY's $5.9M GO Bonds
2h ago In China meat scandal, McDonald's Japan switches to Thai chicken, no nuggets in Hong Kong
1d ago COCA COLA : Governor denies switching to Fanta to boycott Coca-Cola
Most recommended articles
2m agoDJMARKET SNAPSHOT : U.S. Stocks: Futures Lower; Amazon Tumbles
3m agoDJMOL : No Progress in Talks with Croatia on INA
9m agoDJU.S. Durable Orders Rose 0.7% in June
11m ago Air France-KLM readies new plan to counter low-cost rivals
17m ago Alitalia shareholders meet to vote on share issue
Dynamic quotes  
ON
| OFF