David Tepper, the founder of hedge fund Appaloosa Management, said that he’s short the euro during a talk at the Robin Hood Investors Conference in New York City. Tepper, whose fund specializes in distressed debt, said he expects that the European Central Bank will need to expand its balance sheet by instituting more quantitative easing and further “loosening” monetary policy to stimulate the eurozone’s flagging economy.
Early on Tuesday, news reports surfaced that the ECB is weighing whether it should start buying corporate bonds, sending the euro back to the downside after a brief respite. The pair last traded on Wednesday below the $1.2700 handle.
Wednesday: The EUR/USD is trading at 1.2662 during the American session…