Analysts at UniCredit said Wednesday that the euro has hit its bottom. The researchers argued that the fundamentals which drove the dollar’s eight-month rally have mostly dissipated. Vasileios Gkionakis, head of global FX strategy at UniCredit in London, said that the dollar‘s rally has recently been driven by speculators piling into the trade, not by higher real interest rates in the U.S., which served as the rally’s catalyst. Gkionakis’s reasoning is illustrated by the chart below. This sudden run-up in the dollar’s value was a boon for hedge funds, which have garnered a substantial portion of their profits over ... (full story)