Futures Traders Bet On Dollar Gain For First Time Since 2005

Futures traders are betting for the first time since December 2005 that the dollar will gain against the euro.

The difference in the number of wagers by hedge funds and other large speculators on a decline in the euro compared with those on a gain, known as net shorts, was 21,315 on April 29, compared with net longs of 18,907 a week earlier, figures from the Washington-based Commodity Futures Trading Commission show.

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Comments

[EinChicago]

The dollar is going to rebound. anyone with 2 working neurons can see that. However, it's not because of a rise on the dollar's part so much as because of the impending Euro bubble burst. The EU is sjust starting to feel the apex of the credit crunch stress fractures. For example, in my home town, condos that sold for almost 300,000 pounds last year are now listing for less than 100,000 pounds. Some countries, like Germany, have massive inflation and a housing bublle burst while others have masisve deflation and a housing bubble burst. October/November 2007 was when the US banks really hit the peak of the crunch; it's just starting to peak in the EU and the Euro bubble is going to be nasty because the EU is going to get a double whammy; a credit crunch and housing bubble burst made much, much worse by a short lived but violent artifical Euro burst over the past 5 months.

[javaman]

they must know that the US is going to attack Iran. There are historic reasons for this statement.

each and every country that has decoupled from the US dollar in regards to oil has been attacked or ruined economically by the US.

Since Iran has now switched completely away from the dollar and have established their own bourse, it's just a matter of time before the bombs start raining down.

Afterwhich, whomever is left will become the next US puppet in charge and promptly return to the dollar, thus raising its value.

At this point, because the US eonomy is based upon constant growth via consumption of goods, (thank you repubs), this will come to pass.

[sixthskinjob]

Attacking Iran would seem to be a curious strategy...seeing how a similar approach has worked so well regarding Iraq.

Saudi Arabia is a nation to be more wary of. They are currently being force-fed our inflated dollars...leading to, of course, higher consumer prices. The Saudi people won't put up with that forever. Better hope that a fundamentalist movement doesn't pick up some steam a la Iran in the late 1970's...of which deposed a leader who we were quite keen on for a time, until he decided to get a little too assy.

[javaman]

Oh I never said it was logical. LOL

Like I said to a buddy when this so called "war on terror" began, if they* really wanted it to end, they* should go after saudi arabia, pakistan and egypt.

but alas, here we are; Iraq, the worlds largest money laundering operation.

[mamacat]

Will the dollar gain in value? Maybe in the very, very long run. For now, we are stuck with the underlieing problems that got us into this Republican fiasco. Until changes are made to the reasons why the dollar has plummeted, I think we are more likely to see blips in the downward trend, rather than a reversal upwards.

[sixthskinjob]

"the dollar will sink like the Titanic"

...or perhaps more like the Lusitania.

[Novista]

I sense the Men in Black (a.k.a Plunge Protection Team) waving their magic wands ...

[WIpatriot]

Look at the British who are trying to force the dollar up. It's moved a whole 7 cents already. How long do you think this can last?? Not very is correct.

[NewRiver]

How about it. Hey, check out the Counterparty Risk Management Policy Group...the "new and improved" PPT.

[Robert59]

The dollar will fall further. We now have our allies on the peninsula (Kuwait for one) giving serious consideration to pegging oil to another currency. The Fed's interest rate cuts haven't helped anyone but banks and investment houses. They are able to borrow money at ridiculously low rates and lend it for ridiculously high.

What's good for them is bad for the consumer and for holders of American debt who want higher rates of return when they buy bonds. This drives the value of the dollar even lower.

There's no sign oil will level off or decrease and while the reset of subprime loans peak in June (full impact felt Oct Nov) the peak for the Alt As doesn't occur until late 2009. Those loans are fewer in number but greater in value.

Wishful thinking on the part of futures traders.

If you think I'm full of crap, why is Warren Buffett stating if he had a billion dollars to invest today he would not put most of it in the U.S. but in countries like China and India whose currency is appreciating?

[Wiredwilly]

The Dollar will rise a few cents due to all the smoke & mirrors of the recent bail outs, rate cuts, and the " stimulus package rebate " then in two months when it occurs to everyone all that those efforts did was raise the National Debt and create more interest due on basically worthless currency , the dollar will sink like the Titanic.

[WIpatriot]

Pretty much, WW.