CFTC Report Shows Signs Strong Dollar Is Losing Steam

Speculators held their dollar-long positions steady at $47 billion in the week between Feb. 3 and Feb. 10, but there were signs that the market's strong pro-dollar sentiment may be weakening. The gross short position in all the major currencies, the euro, the pound, the yen and the franc, narrowed, suggesting that "traders lack the conviction to add to their positions," wrote Camilla Sutton, chief FX strategist at Scotiabank, in a Friday research note. Most notably, bearish sentiment in the euro has lessened for the first time since mid-December, as the total amount of net-short positions against the shared currency narrowed by $600 million to $27.5 billion.