NEW YORK (Reuters) – Speculators reduced their net short dollar positions in the latest week to the lowest level since late July, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.

The value of the net short dollar position fell to $28.35 billion in the week ended Oct. 6, compared with a net short of $30.47 billion the previous week. U.S. net shorts hit a more than nine-year high of $33.68 billion in late August.

U.S. dollar positioning was derived from contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, and Swiss franc, as well as the Canadian and Australian dollars.

In a broader measure of dollar positioning

that includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real, and Russian ruble, the U.S. dollar posted a short position of $28.56 billion, down from net shorts of $30.41 billion the week before.
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The speculative community has been short the dollar since mid-March.

In the week through Oct. 6, the dollar index <=USD> ultimately ended the period little changed, having followed see-sawing headlines about U.S. President Donald Trump’s COVID-19 diagnosis and the possibility that Congress might provide further fiscal stimulus.

The possibility of a new coronavirus relief bill has driven the dollar, among other safe-haven assets, lower since Tuesday. The dollar fell to three-week lows on Friday on stimulus optimism, and as investors bet that Democrat Joe Biden is more likely to win the U.S. presidency and offer a larger economic package. [FRX/]

(Reporting by Kate Duguid; Editing by Chris Reese and Sonya Hepinstall)

Copyright 2020 Thomson Reuters.

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JPMorgan


  • JPMorgan will pay the largest CFTC monetary penalty ever and admitted wrongdoing in order to resolve a case surrounding claims of market manipulation in the trading of precious metals and Treasury securities, Bloomberg first reported.
  • The case covers an eight-year period and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset.
  • JPMorgan will pay $920 million, which includes a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement.
  • Visit Business Insider’s homepage for more stories.

JPMorgan will pay $920 million and admit wrongdoing in order to resolve a case surrounding claims of market manipulation, Bloomberg first reported on Tuesday.

The $920 million payment represents the largest-ever monetary penalty imposed by the Commodity Futures Trading Commission, and consists of a $436.4 million fine, $311.7 million in restitution, and $172 million in disgorgement, according to a statement from the CFTC seen by Bloomberg.

The case covers an eight-year period and relates to the practice of “spoofing,” where traders put in large orders to buy or sell a security with no intention of executing the order, creating the appearance of demand or supply for a particular asset, and helping move that asset in the desired direction of the trader.

It’s unlawful to submit and cancel orders in a strategy intended to deceive other traders.

The settlement will put an end to a criminal investigation of the bank that has entangled a half-dozen employees. Two employees have entered guilty pleas, while four employees are facing trial, according to Bloomberg.

JPMorgan traded down as much as 2% on Tuesday.

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