Short Eurodollar Has Been "Painful"

With Eurodollar prices hovering near the 99.74 level three months ago, when the CFTC Commitment of Traders report showed the Levered Money and Specs category, the speculative traders, as being significantly short, the market obliged the traders. That short position has recently turned to a new net spec long, a report from the Royal Bank of Scotland shows.

Eurodollar prices, a measure of the value of U.S.-dollar denominated deposits in foreign banks, fell from a high trading range with 99.74 being a mean three months ago to bottoming out near 99.70, benefiting a short position. Then in January,...