Shift to U.S. dollar shorts not a sell signal

While the turnaround in positioning from long to short on the dollar shows that sentiment on the U.S. currency has deteriorated sharply, analysts say it should not be interpreted as a sign the greenback is about to collapse.

Fears that the U.S. economy is at risk of a double-dip recession after a string of weaker-than-expected data this month have been weighing on the dollar and helping contribute to a gradual erosion in long dollar positions.

Declines in the greenback accelerated last week and the euro hit a two-month high after the Federal Reserve's minutes of its last meeting showed policymakers were concerned the U.S. recovery may be slowing. Read more

Dollar/yen falls as risk appetite wanes following Bernanke

* Fall in U.S. bond yields seen hurting greenback

* Euro/dollar stalls as Europe stress test results in focus

The dollar slid close to a seven-month low against the yen on Thursday after Federal Reserve chairman Ben Bernanke said the U.S. economic outlook was "unusually uncertain", sparking a sell-off in riskier assets. Read more

C$ weakens after Bank of Canada hikes rates

The Canadian dollar fell slightly against its U.S. counterpart on Tuesday morning after the Bank of Canada raised its key interest rate but warned that economic recovery at home and abroad will be slower than thought, foreshadowing a more hesitant pace of rate hikes from now on.

Last month, the bank became the first in the G7 advanced economies to raise rates from the emergency lows introduced during the global economic crisis. It took a second step on Tuesday by lifting borrowing costs by another 25 basis points to 0.75 percent, a move unanimously predicted by Canada's primary securities dealers. Read more

Dollar/yen crawls towards 7-mth low of 86.96

* Euro/dollar breaks above Ichimoku cloud

* $1.3125 retracement level may be one target for euro

* Kiwi slips after weaker-than-expected inflation data

The dollar weakened on Friday, crawling towards a seven-month trough against the yen after a series of U.S. data this week underscored a slackening in the economy's recovery.

Market players closely watched whether the dollar could hold above its July 1 low of 86.96, its lowest since early December, as a fall below that level could boost the possibility of the greenback dropping to 84.82 yen, a 14-year low reached last November. Read more

Euro dips vs dollar after German ZEW

Treasury yields were near the highest level in two weeks as investors gained confidence in the global economy’s ability to overcome Europe’s debt crisis, curbing demand for the relative safety of U.S. securities.

Record bond yields in Europe are proving too good to miss for Michiel de Bruin at F&C Asset Management as predictions of imminent sovereign defaults subside. U.S. yields have increased this month as the government prepared to auction $35 billion of three-year notes today, $21 billion of 10-year debt tomorrow and $13 billion of 30-year bonds on July 14. read more

Shift to U.S. dollar shorts not a sell signal

Dollar/yen falls as risk appetite wanes following Bernanke

C$ weakens after Bank of Canada hikes rates

Dollar/yen crawls towards 7-mth low of 86.96

Euro dips vs dollar after German ZEW

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