Saturday, October 24, 2009

Options Trading Shows ‘No Hint’ of U.S. Dollar Crisis, RBS Says

(Bloomberg) -- Options trading suggests the euro is nearing the end of its advance against the U.S. dollar and there is “no hint of a crisis” in the world’s main reserve currency, according to Royal Bank of Scotland Group Plc.

“There are surprisingly few signs of real fears of an outsized euro-U.S. dollar move to the upside,” Alan Ruskin, head of international currency strategy in North America at RBS Securities Inc. in Stamford, Connecticut, wrote in a note today. “The market appears to be taking an appropriate view that we are sucking the last juice out of the short U.S. dollar trade that probably has a maximum of 10 big figures left in it to $1.60 versus the euro.” A short position is a bet that a currency will depreciate.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aL6ONAxoHXEc

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