It's now pretty clear why the euro has been tanking against the dollar lately.
Investors have been fleeing the currency in droves -- euro bearishness is back to 2008 crisis levels.
They might not be all that crazy though. It seems fair to say that the euro seems worse off today than during the peak of the crisis.
Traders have spurned European stocks in favor of shares elsewhere for a record 19 straight weeks, “clearly hurting” the currency by draining a net $13 billion from the market, said Geoffrey Yu, a UBS AG analyst. Investors are as bearish on the euro as they were when the 2008 financial crisis was pushing them to the dollar’s perceived safety, futures data show. After buying more euros than ever in 2009’s second quarter, central banks pared back, International Monetary Fund data show.
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See Also:
- Spanish Economist Ni�o Becerra: 'Two Months Until Euro Market Crash'
- Did The EU Just Kill The Volcker Rule?
- Morgan Stanley: Greece Is A Trojan Horse That Threatens The Euro And The Credibility Of Europe Itself
Full story at http://feedproxy.google.com/~r/businessinsider/~3/n2mBjGADEKM/investors-ditching-the-euro-2010-2
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