Tue, Jan 24, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bank of America Merrill Lynch: classic market squeeze for EUR and USD underway

Tuesday, September 18, 2012

Bailey McCann, Opalesque New York: Macro hedge funds have sold the US Dollar to a net short for the first time since June, according to the latest data from lead hedge fund analyst at Bank of America Merrill Lynch Global Research, Mary Ann Bartels. They continue to buy the S&P 500 and NASDAQ 100, while selling commodities, 10 year treasuries and reducing emerging markets exposure.

The Euro appears to be in place for a short squeeze, according to the report – "a significant short squeeze could be under way that can take the euro higher than most think possible. The euro held key support at €1.31 and formed a double bottom. It is not impossible for the euro to reach into the low €1.40’s on a squeeze. First level of resistance to challenge is €1.35. Support is €1.25. Amazingly, if our upside projection is reached the long-term trend for the euro would still remain down," Bartels writes.

The US Dollar is on pace to be the exact opposite and face a long squeeze which could move the currency down near 75.

The investable hedge fund composite index was up 0.35% month-to-date as of September 12, underperforming the S&P 500’s 2.13%. Within strategies, event driven was the best performer up 0.64% while convertible arbitrage was the worst down 0.68%.

In commodities, the end of this market correct......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised