Speculators add to net-long yen positions: CFTC

11 Apr, 2004

Speculators in IMM yen futures added to net-long positions in the week ended April 6, while the net-long position in Canadian dollar futures hit a 12-month high, according to data from the Commodity Futures Trading Commission on Friday.
Speculators trimmed their IMM net-long euro futures contracts slightly, slowing a five-week downtrend, the data showed.
Yen futures speculators added to their net-long positions for a second week in a row, with contracts now totalling 20,388.
Net-long Canadian dollar futures contracts hit their highest level since March 18, 2003 with a total of 41,865. In the prior period, the net-long position had increased five-fold.
The Australian dollar, another of the so-called commodity currencies, saw its net-long position more than double in the latest week to 10,367 contracts from 4,172 contracts in the previous period.
The high-yielding British pound saw the downward trend in its IMM net-long position reverse course, rising to 11,251 contracts from 5,235 contracts in the prior period.
The CFTC's Commitments of traders report data on speculative positioning are used by analysts as an indicator of future market direction.
For example, extreme net-long speculative positions often signal a decline in a currency, especially if that position conflicts with the positioning of the more influential commercial players.
Speculators are generally trend followers seeking to pick a precise top or bottom in the market.

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