The short Euro trade just became a little more over-crowded as Lord Rothschild has just taken a new £130m short bet on the currency.
Something tells us Rothschild has been stacking gold and silver faster than the Chinese, and he likely didn’t wait till 2007 to start.
Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.
The member of the banking dynasty has taken the position through RIT Capital Partners, the £1.9bn investment trust of which he is executive chairman.
The fact that the former investment banker, a senior member of the Rothschild family, has taken such a view will be seen as a further negative for the currency.
The latest omen follows news in The Daily Telegraph late last week that the government of Finland is already preparing for the euro’s break-up.
RIT, which Lord Rothschild has led since 1988, had a -7pc net short position in terms of principal currency exposures on the euro at the end of July, up from -3pc at the end of January. Given a net asset value of £1.836bn at the end of July, the position is worth £128m.
So Friday reports emerged George Soros has liquidated his entire US financials position and moved it into GLD (over $130 million), yesterday we discover the Frankfurt International Airport has dismantled a massive € sculpture, and today we find that Lord Rothschild has placed a fresh £130 million bet against the €
Looks like the music is getting ready to stop and the big boys are grabbing the first seats!
Please pass the popcorn Sterling!