UPDATE 1-Specs trim bets vs euro; dlr net longs slip -CFTC

NEW YORK, May 21 (BestGrowthStock) – Currency speculators trimmed
bets in favor of the dollar and slightly pared back a record
short position against the euro, data from the Commodity
Futures Trading Commission showed on Friday.

The value of the dollar’s net long position totaled about
$21.78 billion in the week ended May 18, compared with $22.06
billion the previous week, according to CFTC and Reuters data.

The decline came partly from a decrease in bets against the
euro. While speculators were still heavily short euros to the
tune of 107,143 contracts, that was slightly less than the
record net short position of 113,890 contracts the prior week.

Those euro shorts were likely trimmed further after May 18,
as a short squeeze pushed the currency from a four-year trough
below $1.22 to a high above $1.26 on May 21.

“The numbers set the stage for what followed later in the
week, and it confirms the belief that the bounce we saw
Thursday and Friday was related to euro positioning,” said
Matthew Strauss, strategist at RBC Capital Markets in Toronto.

He said speculators are likely to rebuild euro shorts in
the weeks ahead, as markets remain anxious about potential debt
crises in several euro zone countries and the impact deficit
cutting measures will have on growth.

“I think the duration of that short squeeze will be fairly
short itself,” Strauss said.

Bets against sterling also rose to a record of 76,745
contracts, according to Reuters data, from 72,188 contracts.

The Reuters calculation for the aggregate U.S. dollar
position is derived from the net positions of International
Monetary Market speculators in the yen, euro, British pound,
Swiss franc, Canadian and Australian dollars.

To be short a currency is to bet it will decrease in value,
while being long a currency is a bet its value will rise.

JAPANESE YEN (Contracts of 12,500,000 yen)

5/18/10 week 5/11/10 week

Long 21,393 23,265

Short 55,682 57,934

Net -34,289 -34,669

EURO (Contracts of 125,000 euros) 16,312,521,750.00

5/18/10 week 5/11/10 week

Long 54,411 39,584

Short 161,554 153,474

Net -107,143 -113,890

POUND STERLING (Contracts of 62,500 pounds sterling)

5/18/10 week 5/11/10 week

Long 10,492 10,269

Short 87,237 82,457

Net -76,745 -72,188

SWISS FRANC (Contracts of 125,000 Swiss francs)

5/18/10 week 5/11/10 week

Long 10,616 10,020

Short 25,174 27,547

Net -14,558 -17,527

CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)

5/18/10 week 5/11/10 week

Long 53,254 58,010

Short 8,369 7,556

Net 44,885 50,454

AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)

5/18/10 week 5/11/10 week

Long 50,564 56,155

Short 12,184 6,957

Net 38,380 49,198

MEXICAN PESO (Contracts of 500,000 pesos)

5/18/10 week 5/11/10 week

Long 42,037 47,507

Short 6,335 5,549

Net 35,702 41,958

NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand
dollars) -867,035,710.00

5/18/10 week 5/11/10 week

Long 16,740 20,428

Short 4,187 3,536

Net 12,553 16,892

Stock Research

(Reporting by Steven C. Johnson; Editing by Leslie Adler)

UPDATE 1-Specs trim bets vs euro; dlr net longs slip -CFTC