Short Positions

Futures traders increased bets to a record that the euro will weaken against the dollar. The difference between wagers that the shared currency would fall versus those that it would rise surged to 155,195 in the week ended Jan. 10, data from the Commodity Futures Trading Commission showed on Jan. 13.The euro’s 14-day relative strength index against the yen was 26, below the 30-level that some traders see as a sign that an asset may be about to reverse direction. The RSI for the euro-dollar rate was at 32.“Talks about S&P rating cuts had been around since last year,” said Toshiya Yamauchi, a senior currency analyst in Tokyo at Ueda Harlow Ltd., which provides foreign-exchange margin trading services. “Short positions on the euro have accumulated to the extent that there will be an unwinding of these positions to take profit.”
Canada Goose Jakker The Australian dollar weakened against 15 of its 16 major counterparts before data tomorrow that economists say will show China’s growth slowed in the fourth quarter.Chinese gross domestic product rose 8.7 percent from a year earlier, the slowest pace since the second quarter of 2009, according to the median forecast of economists surveyed by Bloomberg News.“A weaker-than-expected number would likely see a bit of pressure on the Aussie dollar,” said Jeremy Jukes, a foreign exchange dealer in Auckland at Velocity Trade Ltd., a currency brokerage. “A drop in GDP is probably not going to do the Aussie too many favors as China is Australia’s largest trading partner.”The Australian dollar sank 0.5 percent to $1.0269, while the New Zealand currency lost 0.2 percent to 79.29 U.S. cents.