Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  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

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

React to this article
Latest news
Date Title
02:45aDJUK Government Cuts Lloyds Banking Stake to 10.97%
02:45a ELVAL HELLENIC ALUMINIUM INDUSTRY : 9/10/2015 Change of Company's Name
02:45a ROBYG : Current Report no. 100 - Conclusion of a purchase agreement regarding land by a company belonging to the capital group of ROBYG S.A.
02:45a PASONA : Appendix Results for the First Quarter of the Fiscal Year Ending May 31, 2016(PDF File/331KB)
02:45a PASONA : Consolidated Financial Report FY2015(June 1, 2015 to May 31, 2016) Three Months Ended August 31, 2015(PDF File/154KB)
02:44a NATIONAL EXPRESS : *merrill lynch cuts national grid to 'neutral' ('buy') - target 965 pence
02:44a NEXT BIOMETRICS ASA : Cancellation of royalty agreement
02:42a WHITE ROCK MINERALS : to Raise USD0.05 Million in Second Tranche of Private Placement of Ordinary Shares
02:42a CU MEDICAL SYSTEMS : to Raise USD15.4 Million in Private Placement of Shares
02:42a IDOX : Acquires 100% Stake in Reading Room
Latest news
Hot News 
6D GLOBAL TECHNOLOGIES : SIXD Levi & Korsinsky, LLP Announces the Commencement of an Investigation Involving Possible Securities Fraud Violations by Certain Officers and Directors of 6D Global Technologies, Inc.
KROMEK : Radiating States success ; TECHNOLOGY
HAYS : *barclays cuts hays price target to 170 (185) pence - 'overweight'
IDOX : Acquires 100% Stake in Reading Room
CINEWORLD : Top 10 films
Most Read News
01:39a Amal is a real jewel
10/08 DAIRY AUSTRALIA : New RD&E model to drive Victorian dairy farm profitability
12:45a MINISTRY OF FINANCE OF REPUBLIC OF INDONESIA : Government Decreases Oil Fuel, Gas and Electricity Prices through 3rd Economic Policy Package
12:01a To Defend Payments Businesses, Banks Must Focus on Customer Pain Points
Most recommended articles
02:45aDJUK Government Cuts Lloyds Banking Stake to 10.97%
02:40a Oil, Copper Surge on Upbeat Demand, Low USD; Gold Volatile to Fed Note
02:37aDJSix Credit Suisse Financial Advisers Leave Ahead of Overhaul
02:37aDJASIA MARKETS : Asian Markets Rise After Fed Minutes Cast Doubt On Rate Hike
02:36a LADBROKES : signs $2.1 billion facility to fund Coral deal