Dollar net short bets declined despite mixed reports

US dollar bearish bets decrease resumed with total net shorts falling to $30.47 billion from $33.60 billion against the major currencies during the one week period, according to the report of the Commodity Futures Trading Commission (CFTC) covering data up to September 29 and released on Friday October 2. The decrease in net short dollar bets was the result of mainly British Pound net long bets turning into net shorts, as well as decline in bullish bets on Australian dollar, yen and euro as Markit flash eurozone services PMI dropped to 47.6 from 51.9 in September while manufacturing purchasing managers index’s rose to 53.7 from 51.7. Dollar bearish bets declined despite the Labor Department report above expected 870 thousand Americans filed for first-time jobless benefits and Federal Reserve Fed chair Powell told interest rates would remain low until at least 2024 and “there is a long way to go” for recovery from the economic downturn. At the same time Census Bureau reported orders for durable goods rose 0.4% on month in August, the fourth straight gain, when 1.1% increase was expected. And Markit’s composite purchasing managers index flash reading declined to 54.4 in September from 54.6 in the prior month, signaling a slower pace of growth.