2010-05-11

Another Euro update

Here's a quick follow-up on the Euro update I published on Friday (2010-05-07). Here are a few coincident posts that lead me to confirm my closing of the short €/long $ position, but also confirms that I should be looking into reverting to long €/short $, as I was until November last year:
  • My friend Mike from SovereignSpeculator.com just published a post where he's buying the Euro for €/$ below 1.27.
  • Carl Futia has a great post about contrarian indicators on the Euro.
  • Finally, Mish has his say too, and when I'm posting and end upon agreement with a later post from Mish, I'm quite proud of myself ;-)
Mish's post:
Euro Extremely Oversold 
The biggest thing the EC has going for it right now is that speculative bets against the Euro are the most lopsided in history. There is currently something like a record low 3% Euro bulls now.

Everyone was a Euro bull when I was dollar bullish with the US dollar index well below 80. Now there are no defenders of the Euro.

Sentimentwise, the Euro can easily bounce here. [...]
Euro on Strong Technical Support
Sentimentwise the Euro could easily bounce. The same holds true technically.

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