Hedge Funds Short the Euro
Anyone else feeling a 2011 flashback?
Once again Europe seems on the precipice as the Euro fell against the US dollar for the third straight day on the row. This happened despite some news that should be somewhat reassuring after a decent bond sale from Spain.
According to Reuters, "Traders cited talk of hedge funds betting the euro will fall to $1.25 soon after the French poll concludes early next month." (France is holding its elections, which usually takes weeks to decide.)
Reports Reuters:
"This is all emblematic of the fact that the market remains very nervous about the state of credit in the euro zone," said Boris Schlossberg, director of FX research at GFT Forex in Jersey City."Despite the fact that we had a decent Spanish bond auction, there is just basic scepticism not only about the sovereign debt market but also the health of the overall banking system, particularly in Spain."
Haven't we already seen this movie?
Phil Albinus is the former editor-in-chief of Advanced Trading. He has nearly two decades of journalism experience and has been covering financial technology and regulation for nine years. Before joining Advanced Trading, he served as editor of Waters, a monthly trade journal ... View Full Bio
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