The short position in the euro is both broad and deep, with bets against the common currency coming from traditional leveraged foreign exchange trades, longer-term macro discretionary funds, real money managers and non-traditional foreign exchange investors who have gone short the euro as a portfolio hedge, says Andrew Cox at Citi. That leaves the euro vulnerable to short squeezes on any positive surprise from European policy makers, who continue to negotiate plans to boost growth and preserve the monetary union. "But at this point, the downtrend remains firmly in place," Cox said. Citi's target is for the euro to fall to as low at $1.23 over the next three months, before stabilizing and gaining back to $1.25 over the following months. Wed in NY, euro was at $1.2589, down from $1.2684, according to EBS via CQG.
Find us on Google+
No comments:
Post a Comment