Euro Drop to $1.20 Seen by Nomura on No Crisis: Chart of the Day
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The euro will weaken more than 5 percent against the dollar by June in a slide that option traders forecast will be slower than the tumble during Europe’s debt crisis in 2012, according to Nomura Holdings Inc.
The CHART OF THE DAY shows that hedge funds and other large speculators boosted wagers this month on the euro’s drop to the most in more than two years, based on the weekly Commodity Futures Trading Commission data. It also tracks options pricing that’s much less bearish, with risk-reversal rates little changed this quarter, signaling expectations for gradual declines.