Wipe Out Of Near Record Number Of EUR Speculators Confirmed

Submitted by Tyler Durden
05/06/2011 15:47 -0400
110 comments

And once again, those seeking a reason why the EURUSD has plunged 600 pips in two days need look no further than this chart. As of Tuesday, per the CFTC net non-commercial long contracts in EUR rose to 99,516, a massive 45% rise in one week and by far the highest in years, following Bernanke's dovish statements from last week, all of which were wrong footed yesterday when Trichet announced no rate hikes for a while, just as Zero Hedge anticipated courtesy of a global economic downturn. As a result of this surge in exposure, we have seen a one way trade as the specs exit the trade en masse. And while the DXY has seen some move higher, the primary reason why its has not surged faster yet is that over the past 5 weeks USD shorts have covered. And just as notable, net Yen short positions declined in half, from -37k to -18.8k. This mean that the G7 will soon have to intervene all over again to keep the Japanese currency weak.



http://www.zerohedge.com/article/wipe-o ... -confirmed