The euro was demonstrating the uprise during the second part of the last week, as the investors preferred not to take up too much of short positions after the active selling of the common currency this week.
Investors had fears to assume significant positions in the euro and other currencies after the acceptation of numerous important decisions during the weekend in May. On Friday in Brussels there was a meeting of the working group of the European financial ministers of finances.
A mass exit of the investors out of the euro amid the economic problems deepened the euro this week to a four-year low versus the US dollar, and a number of short positions in the euro reached the record maximum.
According to the analytical experts’ expectations investors are afraid to play actively in favour of the euro or versus the euro, especially taking into consideration the rumors that the European governments can give it a support.
“The market realized the downfalling tendency of the euro though taking up this attitude you are making yourself dependent from a possible intervention”, noted Daragh Maher, Deputy Head of Foreign Exchange Strategy . “The euro is still structurally weak since the cover of short positions which we were observing during the previous week is likely to have sputtered out”, said Tony Morris from ANZ Bank.
In May, the euro has descended by almost 6 %, which gave birth to the rumors that European officials can be worried by such circumstances.