On the euro-dollar trade."Further evidence that the euro might have peaked against the dollar arrived over the weekend as figures from the Chicago Mercantile Exchange Chicago Mercantile Exchange (CME) Chicago Mercantile Exchange (CME) is the largest futures exchange in the United States and the second largest exchange in the world for the trading of futures and options on futures. showed that speculative investors were net sellers of the single currency for the second week running. Data from the Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC), the federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C.A. 4a), approved October 23, 1974. , widely regarded as a proxy for hedge fund activity, showed that currency traders on the CME CME See: Chicago Mercantile Exchange CME See Chicago Mercantile Exchange (CME). were betting on a decline in the euro for the first time since December 2005 in the week to April 29." "That trend continued in the week to May 6 as figures released late on Friday revealed that traders remained sellers of the euro against the dollar. Analysts said the news reflected a sharp deterioration in economic data from the eurozone Eurozone Noun same as Euroland Eurozone n → eurozona, zona euro Eurozone n → zona euro , which has raised fears of spillover spill·o·ver n. 1. The act or an instance of spilling over. 2. An amount or quantity spilled over. 3. A side effect arising from or as if from an unpredicted source: from the slowdown in the United States. It has seen the euro drop sharply by almost 4 percent from the record high of $1.6018 it hit against the dollar at the end of last month." --Financial Times, May 13 Matthew Rees is head of the financial markets practice at White House Writers Group, a Washington consulting firm. |
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