Fri, May 25, 2018
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 - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven