Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

CFTC Says Net Euro Long Position $3.2 Billion, Down 21%

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 10:26pm CEST

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.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
03:59p AMAZON COM : breaks US biggest five companies
03:58p VASCO DATA SECURITY INTERNATIONAL : Announces Participation in Upcoming Investor Conferences
03:58p INTERNATIONAL STEM CELL CORPORATION : to Present at the 18th Annual Rodman and Renshaw Global Investment Conference
03:58p ASPEN : Secures $3 Million Line of Credit with Largest Shareholder
03:55p Local Bridge with Myrnie McLaughlin
03:53p ENGIE S A : Analysts predict Coleto Creek power plant will close
03:53p TEXAS A&M AGRILIFE EXTENSION SERVICE : Planting sorghums early might help reduce sugarcane aphid damages
03:51p BUSINESS NOTEBOOK : 9-25
03:49p ALLSTATE : Some insurance companies force roof replacements
03:47p FIRSTENERGY : Ohio nuclear plant operating after nearly 2 week shutdown
Latest news
Advertisement
Hot News 
21.42%Twitter In Talks with Suitors, Including Salesforce, Google -CNBC's Faber
15.45%Endo International CEO steps down, Campanelli named successor
-7.37%FTSE records best week in three months
9.77%SANTANDER CONSUMER : USA to Restate Financial Reports
-5.17%FINISH LINE : Comparable Store Sales Rise
Most Read News
09/24 FACEBOOK : apologises for shutting down Palestinian journalists' accounts
03:01a MICROSOFT : HostForLIFE.eu Launches Moodle 3.1.2 Hosting
09/24 MACY : Washington state mall shooting suspect named as victim's mother speaks
04:30a MANCHESTER UNITED : After dropping Rooney, United beats Leicester 4-1 in EPL
09/24 TURKEY TO CONTINUE ECONOMIC REFORMS : Deputy PM Simsek
Most recommended articles
05:38a TENCENT : to donate 2 percent of profit as Chinese online charity grows
09/24 Canada Unifor union sets tentative strike deadline for Fiat Chrysler
09/24 WELLS FARGO : Former employees file class action against Wells Fargo
09/24DJGENERAL MOTORS : GM Shows Off Coming Diesel-Power Small SUV
09/24DJForeign Jet-Fighter Makers Woo India