According to the FT, traders have accumlulated the largest short position against the currency in its existenence, with positions totaling near $8 billion.
Intensified fears over government debt in the eurozone are pushing the euro weaker against the dollar. The G7 achieved nothing over the weekend, the IMF is stuck on the sidelines, and the Europeans are sitting on their hands at least until a summit on Thursday. There is a lot of trading time between now and then – and most of it is likely to be spent weakening the euro further.
sell SPDR-Financial (XLF)
sell S&P 500 SPDR (SPY)
Brian Nick, investment strategist, Barclays Wealth (Nick): Now is a good time to short gold, but probably a better time to short gold would have been back in November, when it was $200/oz higher
Back when the world economy was booming prior to the credit crisis, speculation about how high the price of oil could go was all the rage on Wall Street. As demand surged, investment bank Goldman Sachs famously predicted $200-a-barrel prices, while more provocative commentators saw the price tag reaching $1,000 a barrel.
Feb. 9 (Bloomberg) — A global sugar shortage, which drove prices to the highest level in three decades, may peak in the third quarter this year on demand from the U.S., Mexico, India and Pakistan, according to U.K.-based Tropix Capital Management.