Speculators Flip Bets On U.S. Dollar, Go Long (UUP, UDN)
Speculators were long on the U.S. dollar in the latest week for the first time since May as bets against the currency subsided, according to Reuters which cited data from the Commodity Futures Trading Commission.
Speculators are betting that the value of the dollar will rise with a long position, ending 32 consecutive weeks of short positions on the U.S. currency.
In the week ending December 22 the value of the dollar's net long position was around $700 million, ahead of a net short position in the previous week of $1.98 billion.
The dollar has spent much of 2009 under stress, but has rallied in the last month. The height of the speculators short position rose to $20.7 billion at the height of the dollar selling on spot markets, according to Reuters.
In the latest week speculators slashed bets in favor of the Canadian and Australian dollars while ditching bets in favor on the yen and Swiss franc and went short on both currencies.
The aggregate U.S. dollar position is determined based on the net positions of international Monetary Market speculators on six leading world currencies.
Related ETFs:
PowerShares DB US Dollar Index Bullish (NYSE: UUP)
PowerShares DB US Dollar Index Bearish (NYSE: UDN)
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