Speculators’ net long USD bets shrink to a more than 1-year low -CFTC

Speculators’ net long bets on the U.S. dollar fell in the latest week to the smallest position in more than a year, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net long dollar position was $3.08 billion for the week ended Nov. 1, the smallest since Aug. 17, 2021. Last week speculators had reported a net long position of $10.21 billion.

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.

On Friday, the dollar fell after the U.S. nonfarm payrolls report for October showed the world’s largest economy created more new jobs than expected, but also flashed signs of a slowdown with a higher unemployment rate and lower wage inflation, signs that support the view the Federal Reserve could slow the pace of future rate hikes.

CFTC data on Friday also showed Japanese yen net shorts fell in the latest week to 77,620 contracts, down from a short position of 102,618 contracts.

Among the major currencies, the yen has struggled the most against the dollar this year as the Bank of Japan remains the only central bank that is not in a tightening mode.

The yen has plummeted by nearly 22% against the dollar this year, prompting the Japanese government to spend a record $43 billion supporting the yen in October.