The euro is at its cheapest since April 2003 following the European Central Bank’s various monetary easing measures, according to a survey of fund managers by Bank of America Merrill Lynch.
An investor survey showed such “unambiguous pessimism,” that either risk assets are ripe for a rally or the markets are positioning for a recession and/or an imminent debt default, according to Bank of America Merrill Lynch research, which carried out the survey.
Being long US dollar is the most overcrowded trade for August, while this month the pound is the most overvalued since November 2008, a survey of fund managers showed.
If you are a contrarian, your best bet for July would be to go short banks, as a fund managers survey by Bank of America Merrill Lynch revealed there was a record long in global banks in the month.
OK, let’s set Greece to the side for the moment and turn our attention to second-quarter and first-half earnings. The reporting season kicks off towards the end of this month, and analysts say there may be some nice surprises in Europe.
If you’re going on holiday to Europe and haven’t yet bought any euros, maybe you should hurry. Unless Greece really exits the eurozone (and that can still happen), the pound’s advance versus the euro seems limited from here on.
Forecasts about the euro’s exchange rate against the dollar and other currencies are made even more difficult than usual by the increasing danger that Greece will have to exit the eurozone.
Inflation expectations have jumped among investors, the latest fund managers survey by Bank of America Merrill Lynch shows.
With the UK election getting close, it is becoming more and more obvious that the extremist UKIP party is doing the country more harm than good, especially from a business point of view.
By Antonia Oprita
With elections in Greece stealing the show, investors would do well to keep an eye on the weakening euro and the strengthening dollar.
The re-balancing of the exchange rates of the world’s two main reserve currencies could have painful consequences for many countries and markets.