Where Have All the Euro Bears Gone?

摘要

Speculators placing bets against the euro are retreating in the face of tough talk from German Chancellor Angela Merkel. Traders are starting to believe her when she says Germany will do whatever it takes to safeguard Europe's common currency. The euro has gained almost 6 percent against the dollar since Jan. 10. Demand for contracts used to hedge against a drop in the euro has rapidly evaporated. "Euro zone policymakers are finally moving ahead of the curve," says Thomas Stolper, chief currency strategist at Goldman Sachs in London. "It's getting more difficult for the skeptics to find a crack in the euro."