take what you can take, before market take it back
-
EUR/USD: Frustrated Shorts; Where Now? - SocGen
Last Friday's current account data, which continue to show vast inflows of money into European bond and equity markets, adding to the inflow of cash from the current account surplus, explain why short positions are frustrated so much of the time, and perhaps also why they are inevitable, notes SocGen. "Europe's basic balance' of long-term capital flows and current account continues to be in surplus by over EUR 300bn per annum, and this must have an offsetting short-term capital flow in the other direction," SocGen clarifies. "But the image of the FX market making the balance of payments balance by running a short ... (full story)