Traders make $8bn bet against euro

Article reports that traders and hedge funds bet nearly $8bn (€5.9bn) against the euro in early February 2010, amassing the biggest ever short position in the single currency on fears of a eurozone debt crisis.

It suggests investors are losing confidence in the single currency’s ability to withstand any contagion from Greece’s budget problems to other European countries.

Thomas Stolper, economist at Goldman Sachs, said: 'Behind this intense focus on Greece obviously is the long-standing unresolved issue of how to enforce fiscal discipline in a currency union of sovereign states'.

ESO: Background information: Halcyon no more http://www.europeansources.info/record/halcyon-no-more/

ESO: Background information: EMU on the rocks and all exits closed http://www.europeansources.info/record/emu-on-the-rocks-and-all-exits-closed/

ESO: Background information: Is the euro sustainable? http://www.europeansources.info/record/is-the-euro-sustainable/

BBC News, 8.2.10: Fear that shadows the euro http://www.bbc.co.uk/blogs/thereporters/gavinhewitt/2010/02/fear_that_shadows_the_euro.html

Spiegel Online International, 15.2.10: Spanish Intelligence Reportedly Probing 'Attacks' on Economy http://www.spiegel.de/international/europe/0,1518,677904,00.html

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