It’s now pretty clear why the euro has been tanking against the dollar lately.Investors have been fleeing the currency in droves — euro bearishness is back to 2008 crisis levels.
They might not be all that crazy. It seems fair to say that the euro seems worse off today than during the peak of the crisis.
Traders have spurned European stocks in favour of shares elsewhere for a record 19 straight weeks, “clearly hurting” the currency by draining a net $13 billion from the market, said Geoffrey Yu, a UBS AG analyst. Investors are as bearish on the euro as they were when the 2008 financial crisis was pushing them to the dollar’s perceived safety, futures data show. After buying more euros than ever in 2009’s second quarter, central banks pared back, International Monetary Fund data show.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.