FX traders slashed US dollar long bets before last weeks FOMC meeting

NEW YORK – FEBRUARY 22: Slash of Guns & Roses performs with Camp Freddy during the 2003 Blender Rock the Vote Awards after-party at the Roseland Ballroom February 22, 2003 in New York City. (Photo by Scott Gries/Getty Images)

Foreign exchange traders, in response to last weeks US FOMC meeting, have scaled back their bets for continued US dollar strength.

According to the latest commitment of traders report released by the US commodity futures trading commission, net US dollar long positions fell by $9.8 billion to $15.2 billion in the week to June 16.

The reduction, the first in four weeks according to ANZ, was the largest weekly decline seen since late September 2013 when the US Federal Reserve surprised markets by not tapering the size of its now-concluded asset purchase program.

While the reduction occurred prior to the FOMC meeting, which concluded on Wednesday afternoon last week Washington time, ANZ believe the scaling back of long positions was likely in anticipation of the FOMC outcome.

All currency pairs bar the Swiss franc and Mexican peso recorded a net reduction in long US dollar positioning with that, against the euro and Japanese yen, was particularly large.

The table below provides a snapshot on the change in positioning for the week.

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