Currencies
Hedge Funds Ditch Bets on Euro Ahead of ECB
- Leveraged funds slash wagers on a euro rally by nearly 90%
- Analysts revise down euro forecasts at fastest pace in a year
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Hedge funds are turning ever more negative on the euro ahead of an interest-rate decision by the European Central Bank next week that is proving increasingly difficult to call.
They’ve dumped nearly 90% of their net long euro positions in just one month on growing speculation policymakers will pause an aggressive hiking cycle. Economists and markets are both effectively split over the ECB decision, with traders pricing just a 40% chance of one more quarter-point hike on Thursday.