Gibbs retains euro short ahead of 'rapid contraction'

A sharp contraction in the eurozone economy and further ECB intervention could put more pressure on the euro this year, said Philip Gibbs, manager of the £711m Jupiter Absolute Return fund.

Gibbs said he is retaining a short position in the single currency against the dollar, sterling and the Norwegian krone, and said it is difficult to see how the region can move past the debt crisis without either debt monetisation or waiver. "While steps towards greater fiscal discipline in the EU certainly have some merit over the longer term, the imposition of tougher fiscal targets without addressing other structural deficiencies within the region will likely result in a deep economic contraction," Gibbs said. The manager believes the dollar, sterling and krone should benefit from ...