A dinner party caused the euro to plummet.
For the collapse of the euro, there have been rumors that it was the hedge fund owned by the famous short-selling master Soros. According to foreign media reports, at a private gathering on February 8th, tycoons from the investment community gathered in a private club in Manhattan, new york, to discuss various issues including the European sovereign debt crisis. According to people who attended the meeting that day, some people suggested that the poor economic and debt situation of European countries was not enough to support the current trend of the euro, and some even thought that the euro should fall to the same price as the US dollar.
Subsequently, the spark of dinner coincided with the trend of the euro. According to Morgan Stanley, the highest record since 1999-60000 futures contracts shorting the euro was born in the week of dinner. On February 65,438+00, the third day after the brainstorming meeting, the euro suffered a lot of selling, and the exchange rate of the euro against the US dollar fell below 65,438+0.36, down 65,438+.
While shorting the euro, Soros wrote an article about shorting the euro on February 24th. Soros said in a warning tone: If the EU does not solve its financial problems, the fate of the euro will fall apart. In the month after the dinner, the size of short positions betting on the euro's decline increased rapidly by 73%, from $7 billion to nearly 1, 2 1 billion.
Us justice department investigates shorting euro
After speculating whether hedge funds conspired to short the euro, the US judicial department has launched an investigation into whether well-known hedge funds jointly short the euro. Letters and statements from the U.S. Department of Justice show that at the end of February, relevant departments have asked Soros and Paulson's hedge funds and investment companies to keep transaction records and e-mails related to the euro, so as to further verify whether these investment tycoons maliciously short the euro and gain profits by expanding market volatility.
Soros and other hedge funds have good reason to be bearish on the euro this time. The euro is really bearish recently, but these hedge funds alone are not enough to cause the euro to plummet, because the daily trading volume of the euro is very large. The real reason is that many people believe Soros's bearish view and join the ranks of shorting the euro, thus accelerating the decline of the euro.