Tags: Euro | Rally | europe

Mission Impossible? Euro Rally Would Be Long and Sharp

By    |   Tuesday, 29 Nov 2011 07:35 AM

With all of the worries and discussion about the European debt crisis, it only seems natural that you would have investors making bearish bets against the Euro currency.

Large speculators have not disappointed as they have built the biggest short position in the past year.

Over the course of the last three months, the Commitment of Traders report shows that the large speculators have moved from a net long position of over 300,000 contracts to a net short position of over 800,000 contracts.

News came out on Monday that France and Germany are working on yet another plan to fix the ailing economies of Europe and the ongoing debt crisis. This news helped spur a huge rally in equity markets around the world.

If Europe is able to come up with a solution that is both adopted and effective, the euro could rally sharply against other currencies and particularly against the dollar.

With the huge bearish position being held by large speculators, a rally could be sharp and it could also be lengthy as it will take time to unwind the short position.

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With all of the worries and discussion about the European debt crisis, it only seems natural that you would have investors making bearish bets against the Euro currency. Large speculators have not disappointed as they have built the biggest short position in the past...
Euro,Rally,europe
183
2011-35-29
Tuesday, 29 Nov 2011 07:35 AM
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