Euro Stands Tall in Broad Risky FX Bets Rout


LONDON Reuters The euro climbed across the board on Thursday and the Japanese yen was on track to post its biggest daily rise this year as investors dumped risky positions in currency markets in a broadbased unwinding by some hedge funds.

A weakness in mega cap U.S. technology stocks after the release of the Fed minutes widened to a broader selloff in Asian stocks and renewed demand for the safehaven appeal of government debt and safehaven currencies. GLOBMKTS

While the dollar initially rose in early London trading, the euro jumped across the board as the selloff gathered pace as some hedge funds unwound some of their large bets against the single currency versus some other majors.

Against the dollar, the euro climbed 0.4 to 1.1838 while it strengthened 0.6 against the British pound to 85.98 pence.

This is a classic unwind of risky positions in currency markets with yield chasing trades reversing and flows reversing from current account deficit countries to surplus nations, said a trader at a U.S. bank in London.

While minutes of the U.S. Federal Reserves June policy meeting confirming it was moving towards tapering its asset purchases as soon as this year were widely blamed for the selloff, some traders saw an extension of the unwinding of the reflation theme seen in the global bond markets this week.

The risk off theme is clear across all markets, especially in currencies with the strongest risk DNAs including the Aussie, Canadian dollar and the Kiwi, said…

ETH cans Gain 40 on BTC, Argues Analyst, London Fork Nears

Previous article

EU House Prices Post Biggest Annual Increase since 2007

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News