Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

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

02/22/2013 | 04:26pm US/Eastern
Recommend:
0

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

Recommend :
0
React to this article
Latest news
Date Title
<1m ago Sony, Panasonic, Japan Display to form new company to develop OLED
2m ago DREAMWORKS ANIMATION SKG : Posts Loss In Q2, Results Miss View, SEC Probes Writedown
6m ago TOYOTA MOTOR : says first-half global sales rise 3.8 percent
7m ago Insight - In China food testing, safety inspectors are often one step behind
7m ago BLACK DIAMOND : Provides Update on Minority Interest in Australian Manufacturing Business
8m ago HUAWEI TECHNOLOGY : opens newest store in KL
8m ago METAL BANK : 29/07/14 – Quarterly Activities Report
8m ago RENAISSANCE MINERALS : Successful $6.0M Capital Raising for Cambodian Gold Project
8m ago NIDO PETROLEUM : Trading Halt
8m ago CRATER GOLD MINING : Rights Issue - Despatch of Offer Documents
Latest news
Advertisement
Hot News 
STADIUM : makes Pounds 8m acquisition ; ACQUISITIONS coreena ford
GALECTIN THERAPEUTICS : Other Events, Financial Statements and Exhibits (form 8-K)
ESCHER : Half year trading update
BETTER CAPITAL PCC : Says Spicers To Transfer To OfficeTeam Fund
MOPOWERED : launches 3DS
Most Read News
4h ago FACEBOOK : Twitter assuages growth concerns for now as shares soar 35 pct
4h ago AMAZON : says lower ebook prices benefit authors, publishers
3h ago GENERAL MOTORS : GM sued over deaths, injuries linked to ignition switch
4h ago MOODY : Investment Services affirms Aa2 credit rating for Quebec
4h ago BUFFALO WILD WINGS : 2Q profit climbs 44 percent
Most recommended articles
5m ago TOYOTA MOTOR : says first-half global sales rise 3.8 percent
7m ago Insight - In China food testing, safety inspectors are often one step behind
22m ago US DOLLAR TECHNICAL ANALYSIS : Marching Toward June Peak
26m agoDJECB's Weidmann Says Stronger German Wage Rise Is Positive
26m ago Tobacco tax law cost U.S. billions in revenue
Dynamic quotes  
ON
| OFF