Speculators raise bets versus dollar in favour of euro

Currency speculators increased bets against the US dollar to the most in two months, with bets in favour of the euro at their highest level since early November, Commodity Futures Trading Commission data showed on Friday. The value of the dollar's net short position rose to $18.2 billion in the week ended January 25, from a net short position of $15.06 billion the previous week, according to Reuters and CFTC calculations.
Net long positions on the euro jumped to 22,901 contracts, the highest since the week ended November 9. Last week, speculators went long the euro for the first time in about two months to the tune of 4,109 contracts. A "short" position in a currency is a bet it will decline in value, while a "long" position is a bet on appreciation. The Reuters calculation for the aggregate dollar position is derived from net positions of International Money Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.