Euro Traders Await More Signs of Turkey Pain With Banks at Risk
- Common currency touches lowest level in more than a year
- Three-month riskies show traders most bearish since April 2017
A currency exchange store in in Istanbul.
Photographer: Ismail Ferdous/BloombergThis article is for subscribers only.
There is little sign that the euro is about to turn around its rough patch against the dollar as concerns over the exposure of the region’s banks to Turkey ratchet up and bund yields slide back toward the lower end of their recent range.
The common currency broke below support at $1.1500 Friday to touch its lowest point since July last year following a report that the European Central Bank sees UniCredit SpA as particularly vulnerable to Turkey’s market woes. While there isn’t a large buildup of long positions to be squeezed out, a change in fortunes may be unlikely until bund yields begin to rise more meaningfully, according to Societe Generale SA.