(Bloomberg) — The European financial system’s lurch towards recession is making merchants ever extra satisfied the euro will drop beneath parity with the greenback for the primary time in 20 years.
Most Learn from Bloomberg
Shorting the only foreign money has change into one of the crucial fashionable trades, with strategists from Nomura Worldwide Plc to HSBC Financial institution Plc telling purchasers to anticipate extra losses forward. There’s round a 50% implied likelihood of the euro hitting parity within the subsequent month, in response to a Bloomberg options-pricing mannequin.
Traders are grappling with the chance that Russia might minimize off