standard life (Standard Life Investments) money investment Director Ken Dickson Wednesday (30th), the euro overvalued now, before the sovereign debt crisis is resolved, or fell to underestimate the value of the euro area.
Dickson have short EUR/USD, the size of us $ 1.5 billion, his position sizing was "very appropriate".
Dickson believe that investors are digested European interest rates of 100 basis points is expected this year, and he is expected to raise interest rates in Europe this year to no more than 75 basis points. Margin interest rates less than expected in the near future will have suppressed on euro, while the longer term, external debt problems of countries in the eurozone will drag down the euro to go down.
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he pointed out: "generally, in the presence of such sovereign debt problems and the case of a slower growth trend, a weak currency can help ease the pain during the fiscal consolidation process. "
Dickson expected United States economic fundamentals are gradually improved and helped boost the dollar. He said: "dollar short positions have reached the extremes, from the perspective of emotion index, euro bulls are nearing extreme. This indicates that the dollar downward space is rather limited. "
4:58 ', EUR/USD 1.4129/31.
