Sunday, January 15, 2012

More euro shorts

Euro Falls After S&P Strips France of AAA Rating
By Candice Zachariahs and Masaki Kondo
The euro weakened for a second day, reaching an 11-year low versus the yen, after Standard & Poor’s stripped France of its top credit rating and cut eight other euro-zone nations...
“Those downgrades provided another excuse for the speculative community to add to their short positions in euro,” said Mike Jones, a currency strategist at Bank of New Zealand Ltd. in Wellington. “We’ve got a few more European debt auctions out there as market sentiment continues to be tested.” A short position is a bet that an asset will decline in value...
Comment: In the battle against the euro the last heavy shot was fired - more a loud bang than real casualty.

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