Major Hedge Funds Bet Against the Euro

WSJ reports:

Heavyweight hedge funds have launched large bearish bets against the euro in moves that are reminiscent of the trading action at the height of the U.S. financial crisis.

The big bets are emerging amid gatherings such as an exclusive "idea dinner" earlier this month that included hedge-fund titans SAC Capital Advisors LP and Soros Fund Management LLC. During the dinner, hosted by a boutique investment bank at a private townhouse in Manhattan, a small group of all-star hedge-fund managers argued that the euro is likely to fall to "parity"—or equal on an exchange basis—with the dollar...

Reportedly, the trade is being called a "career trade", you plow all your money into this bet, and it will make your career.

As I have pointed out, I do no believe the PIIGS crisis is the key to euro weakness, but rather the fact that the Fed is not printing any money. Thus, if there is some short-term stability, in say, the Greek crisis, the euro is likely to rally, which would provide a great entry point for adding to euro short positions.