Euro rises ahead of G-7 talks, hedge fund record shorts

by Joe Oliver, Forex Trading-Pips

The Euro rose for a second day on Monday ahead of talks between finance ministers and central bank governors regarding Europe’s debt crisis. The upcoming talks are helping to drive optimism for further measures to ease tensions¬† in the euro zone.¬†European Central Bank Policy makers are forecast to keep the main refinancing rate at a record-low 1 percent when they meet on Wednesday.

Euro currency fell close to two year lows last week with hedge funds holding a record amount of short positions. CTFC data released last Friday showed short positions in the euro increased by 13,627 contracts to reach a new record high.

EUR daily bars

EUR daily bars