20 May 2010

Radioactive Euro

There's not a fight
And I'm not your captive
Turn me loose tonight
Cause I'm radioactive

WSJ: The Euro Turns Radioactive
Longer-Term Investors and Companies, Not Just Hedge Funds, Shun the Currency

Some of the world's largest money managers and central banks have become increasingly skeptical of the euro, presenting a threat to the common currency's prospects.

So far during the euro's months-long descent, attention has been focused on hedge-fund selling of European assets but central banks and large managers have a much-larger influence on foreign-exchange markets. Even if they don't dump euro assets, a mere pause in their buying could weigh heavily on the currency.

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