Euro Short-Squeeze Stage Set as Currency Tests 3-Month High

Draghi Sees Vigorous Pickup in Core Inflation: Statement
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Euro bears are holding tight, setting the common currency up for a potential short squeeze that could turbocharge a burgeoning rally.

Hedge funds and other large speculators have been adding to their euro short positions, according to the latest data from the Commodity Futures and Trading Commission. Having reached a 19-month peak in August, the fast money had pared its net short holdings for three consecutive weeks. But it’s edging up again. The euro reached a three-month high in the spot market on Monday.