We’ve been talking for the past several days about the extreme anti-euro/pro-dollar sentiment that’s built up of late.
And obviously when sentiment is at an extreme, there’s always the risk of some sharp reversal that catches a whole bunch of investors with their pants down, so to speak.
There’s reason to be worried that this happens next week.
In a bit of news that got buried this morning, Dow Jones newswires reported that Greece would try to float a tiny bond offering next week, following the announcement of some kind of “good news” with regards to taxation and spending.
The idea seems to be: catch speculators by surprise, time the announcement to coincide with other “support” or whatnot with the rest of the EU, cause the euro to soar and then BAM, ram the debt offering through.
Don’t say we didn’t warn you.