From Zero Hedge:
Whether the European deterioration is real or not, one thing is certain: FX traders aren't sticking around to bet on a rebound.
As of Friday, the net non-commercial position in the EUR currency was at -173,869 contracts or the biggest net short in history, surging by 30k contracts over the prior week, and by a record 70k contracts in the past two weeks as things in Europe unwound rapidly.
The short position is greater than the last such record hit back on January 24, when the net short was -171K... and the LTRO effect was yet expected to take hold.
Naturally, with such a massive surge in shorts in a short period of time, this means that the likelihood of major short squeezes is substantial on even the most innocuous of news, such as...
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