Bloomberg News

Traders Boost Wagers Against Euro to Record

May 18, 2012

Hedge funds and other large speculators boosted wagers to a record that the euro will weaken against the dollar amid speculation Greece may exit the shared currency.

Bearish bets, so-called net shorts, totaled 173,869 in the week ended May 15, according to the Commodity Futures Trading Commission. That was up from 143,984 a week earlier and compares with a previous record of 171,347 reached on Jan. 27.

The euro rose 0.7 percent to $1.2792 at 4:05 p.m. in New York, paring its weekly loss against the dollar to 1 percent. It touched $1.2722 on May 15, the lowest since Jan. 17.

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors that buy or sell futures. Analysts and investors follow changes in speculators’ positions because such transactions can reflect an expectation of a change in prices.

To contact the reporter on this story: Allison Bennett in New York at abennett23@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net


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