March 25, 2010

Largest Forex Hedge Fund Expects Euro At 1.20 This Summer

The largest forex hedge fund is expecting the euro to trade down to 1.2000 vis-a-vis the US dollar by this summer:

"The problems in Europe are deeper than many suspect. So says the largest Forex hedge fund in the world. John Taylor, chairman and chief executive officer of FX Concepts LLC, says Europe is likely to see some defections from the Euro system and could result in further weakness in the Euro"

This would be very bearish for US commodity related stocks like Alcoa Inc. (Public, NYSE:AA), United States Steel Corporation (Public, NYSE:X), Freeport-McMoRan Copper & Gold Inc. (Public, NYSE:FCX) and Titanium Metals Corporation (Public, NYSE:TIE).

Related etf`s: PowerShares DB US Dollar Index Bullish (Public, NYSE:UUP)

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