Currency speculators decreased bets in favour of the US dollar in the latest week, according to data from the Commodity Futures Trading Commission released on Friday. The value of the dollar's net long position fell to $13.77 billion in the week ended October 4, from net longs of $14.38 billion a week earlier. Speculators slightly increased bets against the euro, with a net short position of 82,697 contracts. A week earlier, net euro shorts stood at 82,473 contracts.
Speculators also reversed bets in favour of the Swiss franc in the latest week, as the currency has weakened significantly following the Swiss National Bank's move to put a floor under the euro/Swiss franc exchange rate. Net long bets on the commodity-linked Australian dollar more than doubled to 12,911 contracts, the CFTC data showed. To be short a currency is to bet it will decline in value, while being long is a view its value will rise. The Reuters calculation for the aggregate US dollar position is derived from net positions of International Monetary Market speculators in the yen, euro, British pound, Swiss franc, Canadian and Australian dollars.
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