Net long dollar bets highest since 2016

Speculators’ net long bets on the US dollar rose in the latest week to the largest position since December 2016, according to latest calculations by Reuters and Commodity Futures Trading Commission data.

The value of the net long dollar position was $29.53 billion (Dh108 billion) in the week ended November 27, up from $28.49 billion the previous week.

Speculators were net long on dollars for the 24th straight week, after being short for twice as long. To be long on a currency means traders believe it will rise in value, while being short points to a bearish bias.

US dollar positioning was derived from net contracts of International Monetary Market speculators in the 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 rouble, the US dollar posted a net long position valued at $30.11 billion, compared with a net long position valued at $28.98 billion a week earlier.

The dollar rose on Friday as investors prepared for USChina trade talks’ outcome at the G20 meeting on Saturday, expected to increase volatility across markets.