Euro Becoming Haven With Breakup a Memory on Economy: Currencies
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The euro is becoming a haven for investors who just three years ago pushed the 17-nation currency union close to breakup.
The 90-day correlation between changes in the euro and a Citigroup Inc. index of bond and swaps risk has turned positive for the first time since November 2008, meaning the currency is gaining favor as investors’ perceptions of turmoil in financial markets rises. Hedge funds and other large speculators are the most bullish on the euro since 2011, data from the U.S. Commodity Futures Trading Commission show.