Online Reporter
The euro’s fastest rally in a decade and a half is gaining traction, with traders betting on a move to $1.20 and strategists scrambling to update their forecasts.
Europe’s common currency hit its strongest level in three years at the end of last week as economic uncertainty radiating from US tariff policy raised questions about the dollar’s traditional haven role.
Three out of four options contracts bought Friday were for more euro gains, according to data from the Depository Trust & Clearing Corporation. Traders say hedge funds are targeting a move to $1.20.
And strategists at Mizuho International Plc see rising odds that the currency hits that level — the highest since mid-2021 — in the coming months.
The euro’s fastest rally in a decade and a half is gaining traction, with traders betting on a move to $1.20 and strategists scrambling to update their forecasts.
Europe’s common currency hit its strongest level in three years at the end of last week as economic uncertainty radiating from US tariff policy raised questions about the dollar’s traditional haven role.
Three out of four options contracts bought Friday were for more euro gains, according to data from the Depository Trust & Clearing Corporation.
Traders say hedge funds are targeting a move to $1.20.
And strategists at Mizuho International Plc see rising odds that the currency hits that level — the highest since mid-2021 — in the coming months.
“The FX market is long euros, but structural diversification flows will make this a theme many will jump on,” said Jordan Rochester, head of macro strategy for EMEA at Mizuho International Plc. “My upside risk of $1.15–$1.20 this year is quickly becoming a base case.” — Bloomberg.
