Thats a fair old bet which reflects the markets view of the Euro, should the Euro continue to go down the dollar could well be the beneficiary and gold could lose out. However, the Euro has taken a dive lately and sooner or later all this news about Greece etc, must get baked into the cake making a Euro bounce a possibility.
This is an extract from the FT on the matter:
Traders and hedge funds have bet nearly $8bn (€5.9bn) against the euro, amassing the biggest ever short position in the single currency on fears of a eurozone debt crisis.
Figures from the Chicago Mercantile Exchange, which are often used as a proxy of hedge fund activity, showed investors had increased their positions against the euro to record levels in the week to February 2.
The build-up in net short positions represents more than 40,000 contracts traded against the euro, equivalent to $7.6bn. It suggests investors are losing confidence in the single currency’s ability to withstand any contagion from Greece’s budget problems to other European countries.
Thomas Stolper, economist at Goldman Sachs, said: “ Behind this intense focus on Greece obviously is the long-standing unresolved issue of how to enforce fiscal discipline in a currency union of sovereign states.”
To read the whole article please click here.
So there you have it.
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