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

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 CET

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
12:36p SUNOCO : Police beat Dec. 3
12:33p LG ELECTRONICS : Appoints Jo Seong-jin as the Companys New CEO
12:32p VIRTUSA CORPORATION : Risk Points versus Technology
12:32p ACTIVE TECH STOCK NEWS : Zendesk (ZEN), Semtech (SMTC)
12:32p CATERPILLAR : Gains Approval for Analysis Software
12:30p Small banks rally pauses but may not be over yet
12:27p CARLYLE LP : Group Closes Fourth 2016 CLO in US Totaling $507 Million
12:24p BOMBARDIER : 2,000 guests attend airBaltic's presentation ceremony of new CS3000 aircraft
12:19p KINDER MORGAN PIPELINE : Canadians intensify huge opposition to expansion
12:18p TECHCOMP : 2016/12/01 - Monthly Return of Equity Issuer on Movements in Securities for the month ended 30/11/2016
Latest news
Advertisement
Hot News 
16.12%PANDORA MEDIA : Open to Sale -CNBC's Faber
4.77%EXCLUSIVE - TRUMP FINANCIER LADDER CAPITAL EXPLORES SALE : sources
8.45%BERKELEY : says demand down 20 percent after tax hike, Brexit
-2.22%STARBUCKS : CEO steps down to focus on high-end coffee, shares fall
1.36%NATIONAL BANK OF CANADA : wants stronger capital buffer
Most Read News
05:26a CHINA VANKE : securities regulator chairman condemns "barbaric" company buy-outs by asset managers
12/02 Obama bars China's Fujian from buying Aixtron's U.S. business
12/02DJUNITED TECHNOLOGIES : State, Local Officials See Pluses, Minuses of Trump's Carrier Deal--2nd Update
12/02 U.S. greenlights Norwegian Air flights in blow to U.S. industry
12/02 RALPH NADER : Trump And His Betraying Makeover – OpEd
Most recommended articles
12/02 Platts considers first addition to Brent basket since 2007
11/30DJCash Crunch Looms Over India's Growth Spurt
11/27DJOil Industry Anticipates 'Peak Demand' Day of Reckoning
06:30a Small banks rally pauses but may not be over yet
05:26a CHINA VANKE : securities regulator chairman condemns "barbaric" company buy-outs by asset managers