The papers are full of stories about big redemptions expected at the end of this month from the hedge fund industry. I’m trying to get my head around the potential flows. Perhaps those flows have already taken place and the hectic dollar selloff of recent days was hedge funds squaring positions to raise cash to payoff investors. It’s hard to say, but we’ll try and find out.
The buck has dipped in the run-up to the Congressional hearing on the Wall Street bailout. Looks like dollar bulls are happy to take what little profit they can. EUR/USD trades at 1.4770, up from the 1.4715 area.