UPDATE 1-U.S. dollar net long bets slide to lowest since mid-Sept 2021 -CFTC, Reuters data

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(Adds analyst comment, details, CFTC table, bitcoin futures) By Gertrude Chavez-Dreyfuss NEW YORK, Jan 21 (Reuters) - Speculators' net long positioning on the U.S. dollar dropped in the latest week to its lowest level since mid-September 2021, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday. The value of the net long dollar position fell to $12.59 billion for the week ended Jan. 18, from $19.34 billion the previous week. Scotiabank, in its report after the release of the CFTC data, said this was one of the largest weekly declines in long dollar positioning since mid-2020. U.S. dollar positioning was derived from net contracts of International Monetary Market speculators in the Japanese yen, euro, British pound, Swiss franc, as well as Canadian and Australian dollars. In a wider measure of dollar positioning, which includes net contracts on the New Zealand dollar, Mexican peso, Brazilian real and Russian rouble, the greenback posted a net long position of $13.028 billion this week, from $19.906 billion in the prior week. "Investors were gripped with a sudden, and perhaps short-lived, given subsequent developments, burst of enthusiasm for the euro last week as spot euro showed some fleeting strength and tested levels near $1.15," said Shaun Osborne, Scotia's chief FX strategist, in the report. Data showed euro net longs rose to 24,584 contracts this week, from 6,005 the previous week. In the case of the dollar, higher Treasury yields have not boosted the greenback as much, with many investors taking the view that most of the recent hawkishness from the Federal Reserve has already been priced in. So far this year, the dollar index has been flat even though U.S. 10-year Treasury yields have risen 20 basis points. The benchmark yield was last at 1.7705%. In cryptocurrencies, bitcoin futures' net short positions dropped to 549 contracts this week, from 377 the previous week. The latter was the smallest net short since late September. Bitcoin and crypto sentiment overall has been fragile for most of the month, as investors moved away from riskier assets ahead of Federal Reserve meeting next week, which is expected to flag an interest rate increase in March. The world's largest digital currency has also been affected by news that Russia has proposed a ban on the use and mining of cryptocurrencies. Bitcoin was last down 10% at $36,660, after earlier dropping to a six-month low. Since the beginning of the year, bitcoin has lost 20% of its value versus the dollar. Japanese Yen (Contracts of 12,500,000 yen) $8.821 billion 18 Jan 2022 Prior week week Long 8,002 22,364 Short 88,881 109,889 Net -80,879 -87,525 EURO (Contracts of 125,000 euros) $-3.48 billion 18 Jan 2022 Prior week week Long 211,901 204,361 Short 187,317 198,356 Net 24,584 6,005 POUND STERLING (Contracts of 62,500 pounds sterling) $0.021 billion 18 Jan 2022 Prior week week Long 39,760 30,506 Short 40,007 59,672 Net -247 -29,166 SWISS FRANC (Contracts of 125,000 Swiss francs) $1.473 billion 18 Jan 2022 Prior week week Long 925 4,571 Short 11,735 12,231 Net -10,810 -7,660 CANADIAN DOLLAR (Contracts of 100,000 Canadian dollars) $-0.599 billion 18 Jan 2022 Prior week week Long 49,792 44,284 Short 42,300 51,660 Net 7,492 -7,376 AUSTRALIAN DOLLAR (Contracts of 100,000 Aussie dollars) $6.353 billion 18 Jan 2022 Prior week week Long 9,051 12,383 Short 97,505 103,869 Net -88,454 -91,486 MEXICAN PESO (Contracts of 500,000 pesos) $-0.121 billion 18 Jan 2022 Prior week week Long 75,461 53,194 Short 70,541 57,645 Net 4,920 -4,451 NEW ZEALAND DOLLAR (Contracts of 100,000 New Zealand dollars) $0.564 billion 18 Jan 2022 Prior week week Long 11,612 10,960 Short 19,943 19,564 Net -8,331 -8,604 (Reporting by Gertrude Chavez-Dreyfuss Editing by Chris Reese and David Gregorio)

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