hedgies short euro against dollar "like never before" Posted by Cardiff Garcia on Jan 26 19:42. A chart from SocGen's latest Hedge Fund Watch showing that as of last week, hedge funds were short the Euro against the dollar "like never before..." Make of it what you will - obviously their positions have fluctuated dramatically in the last couple of years (along with the exchange rate itself). In the last five days the EUR/USD has rallied from below 1.27 to just above 1.31. Separately, here's what hedge funds were doing with the 10-year before the Fed's meeting yesterday: And a comment: Look who is buying US treasuries ahead of the Fed! As the Fed is expected to embark on another round of quantitative easing (QE3) sooner rather than later (spring 2012), hedge funds have started to buy 10Y T-notes and have strongly reduced net shorts on 30Y Treasuries. Maybe, but it's also possible that hedge funds were simply buying ahead of a more-dovish-than-anticipated signal from the Fed yesterday. This entry was posted by Cardiff Garcia on Thursday, January 26th, 2012 at 19:42 and is filed under Capital markets. Tagged with euro, hedge funds, SocGen, usd.