Bets on Euro Decline at a Record on Concern Bailout May Fail
By Ben Levisohn
May 14 (Bloomberg) -- Futures traders increased bets to a record that the euro will fall against the dollar a day after European leaders announced a 750 billion-euro ($928 billion) bailout package in an effort to contain a sovereign-debt crisis that threatens to shatter confidence in the shared currency.
The number of wagers by hedge funds and other large speculators for a decline in the 16-nation currency rose on May 11 to 113,890 contracts more than those anticipating a gain, according to Commodity Futures Trading Commission data. It was the third consecutive week that the amount climbed to a record.
“No one wants to buy the euro,” said John Doyle, a strategist at currency-trading firm Tempus Consulting Inc. in Washington.
Comment: A perfect constellation for a coming short squeeze. Contrarians take your chance!