Traders cut long dollar positions as data loom Investors cut long dollar positions on Thursday ahead of key figures on the US economy, with the euro, sterling and the yen all making fresh gains. Market participants were expecting a slight rise in initial US jobless claims to 365,000 but an improvement in the Philadelphia Fed manufacturing survey, a key indicator of the health of the US economy. "With the market positioned long US dollar and short risk, we believe that a stronger than consensus reading could be beneficial for risk appetite as it would fuel expectations of a global turnround in economic activity," said analysts at Credit Suisse. The euro rose 0.1 per cent to $1.2296 while sterling gained 0.2 per cent to $1.5676. The dollar fell 0.3 per cent to Y78.60. However, other risk-related currencies rose against the yen. The Australian dollar rose 0.2 per cent to Y81.8050, continuing to make gains after the Reserve Bank of Australia was more hawkish than expected earlier this week. The Aussie also rose 0.4 per cent against the US dollar to $1.0406. The euro continued to hit fresh record lows against the Australian dollar, falling 0.4 per cent to A$1.1808 and remained close to a record low against the New Zealand dollar and a 12-year low against the Swedish krona, as investors continued to prioritise yield in major currencies. The Swiss franc rose against the US dollar as figures showed a rise in Swiss exports in June for the first time in four months. The dollar fell 0.1 per cent against the franc to SFr0.9770. Foreign exchange analysts said that the risks in the currency markets continued to be that the US dollar would fall in value, with the most recent positioning data from the US Commodity Trading Futures Commission showing that speculators were particularly bullish on the US currency. "We continue to believe the dollar will be more reactive to negative newsflow than moderately positive catalysts due to extreme long positioning continuing to favour a USD sell-off," said analysts at BNP Paribas.