March 24, 2017 / 9:06 PM / 5 months ago

CORRECTED-Speculators cut net short bets on Mexican peso to lowest since Nov. 3 -CFTC, Reuters

 (In second paragraph, corrects number of contracts to 3,281
from 3,122; makes clear "lowest" refers to number of contracts)
    By Dion Rabouin
    NEW YORK, March 24 (Reuters) - Currency speculators
decreased the number of net short bets on the Mexican peso for
the fifth straight week, bringing the number of contracts
against the peso to the lowest since a week before the U.S.
presidential election, data from the Commodity Futures Trading
Commission released on Friday showed.
    The number of net short contracts against the peso moved to
3,281 at a value of $85.9 million. That was the lowest number of
contracts since the week of Nov. 3.
    The peso has been one of the hottest currencies in the world
in 2017, rising by around 17 percent against the U.S. dollar
since the inauguration of U.S. President Donald Trump.
    After touching an all-time high of 22.03 pesos to the dollar
on Jan. 19, on Friday the dollar fell to 18.74 pesos, its lowest
since Nov. 9.
    Speculators and investors have taken note of the peso's
turnaround. UBS on Friday released a note to clients saying they
had moved to an overweight position in the peso. 
    The peso's rise has been "mainly due to a more dovish Fed
and moderating statements from U.S. officials on important
issues such as NAFTA, the trade agreement paramount to the
Mexican economy," UBS analysts said in the note.
    "This in combination with the orthodox policy stance of the
Mexican central bank," said Alejo Czerwonko, director of
emerging markets investment strategy at UBS. "Importantly,
long-term valuations still indicate the peso as attractive,
despite the rally in recent weeks.'
    Speculators raised their net-long positions in the dollar
overall, the CFTC data showed, increasing bullish bets on the
greenback for the third straight week and pushing net longs to
their highest since Jan. 31.    
    The Reuters calculation for the aggregate U.S. dollar
position is derived from net positions of International Monetary
speculators in the yen, euro, British pound, Swiss franc and
Canadian and Australian dollars.
Japanese Yen (Contracts of 12,500,000 yen) 
 $7.768 billion
         21 Mar 2017            Prior week
 Long             35,039            35,563
 Short           102,026           106,860
 Net             -66,987           -71,297
EURO (Contracts of 125,000 euros)
 $5.437 billion
         21 Mar 2017            Prior week
 Long            159,590           148,272
 Short           179,252           189,299
 Net             -19,662           -41,027
POUND STERLING (Contracts of 62,500 pounds sterling)
 $8.136 billion
         21 Mar 2017           Prior week
 Long             32,586           42,367
 Short           140,430          149,484
 Net            -107,844         -107,117
SWISS FRANC (Contracts of 125,000 Swiss francs)
 $1.114 billion
         21 Mar 2017           Prior week
 Long              9,089           12,950
 Short            21,068           21,947
 Net             -11,979           -8,997
CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars)
 $-1.592 billion
         21 Mar 2017           Prior week
 Long             30,293           74,620
 Short            54,696           53,162
 Net             -24,403           21,458
AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars)
 $-3.27 billion 
         21 Mar 2017           Prior week
 Long             85,397           73,553
 Short            40,442           30,288
 Net              44,955           43,265
MEXICAN PESO (Contracts of 500,000 pesos)
 $0.139 billion
         21 Mar 2017           Prior week
 Long             57,730           51,271
 Short            61,011           56,738
 Net              -3,281           -5,467
NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars)
 $0.388 billion 
         21 Mar 2017           Prior week
 Long             16,599           19,509
 Short            29,209           25,114
 Net             -12,610           -5,605


 (Reporting by Dion Rabouin; Editing by Chizu Nomiyama)

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