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Veksler: What's really behind the euro shorts
Investors haven't been this bearish towards the euro for years; the currency's dropped to its lowest level since November and euro shorts are close to two-year highs.
Investors say that much of the region’s bad economic news is priced in the currency. Data out on Thursday showed that the German economy contracted more-than-expected in the second quarter, while France stagnated yet again. Growth in the eurozone as a whole also came in at zero.
London-based trader Ken Veksler, told Saxo TV earlier this week that the market is "naturally and aggressively bearish of the euro" and has been for quiet some time. He says we have known "for years" that things in Europe are "not great" and I that in addition, the market looking to position for higher rates in the US "sooner rather than later" which is helping the push lower.
Looking ahead, Ken thinks a natural squeeze is foreseeable in the euro but only as far as 1.35. he thinks the European Central Bank "only did as much as it could" at its latest policy meeting, and "doesn't think it was enough in it" for bears to be further hardened.
02:11 minutes
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