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Foreign Exchange

IMMs: US dollar shorts slip as risk bears in ascendancy

Net short positions on the US dollar fell in the week ending June 14, the US Commodity Futures Trading Commission’s (CFTC) latest Commitments of Traders reports show, based on International Money Market data.

Dollar net shorts fell to 185,700 contracts, compared with 194,023 the previous week, amid risk aversion prompted by continued concerns over the sovereign debt crisis in Europe.

The dollar may rise in coming weeks, Citi said in a note on Monday, as further risk aversion arising out of Greek debt fears, the end of US quantitative easing (due to be scrapped at the end of June) and a contraction in commodity prices fuel demand for the safe-haven US currency. The Swiss franc and Japanese yen might also outperform, Citi said.

Japanese net long positions edged lower in the week ending June 14, IMM data showed, as recent gains in the Japanese currency abated, while euro net longs held near a four-week high.

Elsewhere, improving sentiment towards sterling helped pushed contracts on the pound into positive territory, with net long positions topping 11,000 contracts, compared with -1,750 the week before.

Mexican peso longs fell sharply to around 48,000 contracts from 90,000, amid concern over slowing economic growth in the US.

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