Speculators’ net bearish bets on the U.S. dollar fell to a 7-week low in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released. The value of the net short dollar position was $29.95 billion for the week ended Feb. 2, compared with a net short position of $33.81 .
| UPDATED: 08:56, Fri, Feb 5, 2021
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Despite an uncertain year in the wake of the coronavirus pandemic and Brexit uncertainty, it seems sterling is finally getting back into its stride. Earlier this week, the pound to euro exchange rate hit a new nine-month high. Yesterday, the sterling enjoyed another “strong day” as it hit above that 1.14 handle.
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NEW YORK (Reuters) - Speculators’ net bearish bets on the U.S. dollar fell to a 7-week low in the latest week, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.
The value of the net short dollar position was $29.95 billion for the week ended Feb. 2, compared with a net short position of $33.81 billion for the prior week.
U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc, and Canadian and Australian dollars.
In a wider measure of dollar positioning that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian ruble, the U.S. dollar posted a net short of $30.57 billion, down from $34.69 billion a week earlier.
February 4, 2021 - Written by John Cameron
The highly mixed Australian Dollar is tumbling against the Pound today, and the British Pound to Australian Dollar (GBP/AUD) is recovering some of this week’s losses. Investors took profit from Pound losses following the Bank of England’s (BoE) February policy decision today, but the Australian Dollar is still becoming more appealing in recent sessions as markets calm from the Reserve Bank of Australia (RBA) dovishness seen earlier in the week.
After opening this week at the level of 1.7937, GBP/AUD briefly attempted to advance higher. GBP/AUD even touched on a high of 1.8002, the pair’s best levels in almost two months, before sliding.
Vessey commented on the volatility risk during BOE tomorrow.
“It’s a Super Thursday Bank of England (BOE) policy meeting tomorrow at midday, meaning new economic projections are released along with the usual policy decision, meeting minutes and press conference, he said. A review of negative interest rates will also be published, and markets are warning of elevated volatility. The British Pound has stuck to an upward trajectory against most major currency rivals since the start of the year, helped by the UK-EU trade deal, the so-far successful UK vaccine rollout, fading negative interest rate outlook and improving global risk sentiment.