Europe’s Rapidly Souring Economy, Politics Do the Euro No Favors
- Manulife’s Peterkin selling euro against dollar, M&G hedging
- ABN has dropped forecast to $1.10 from $1.19, Rabobank may cut
The European Central Bank (ECB) in Frankfurt am Main.
Photographer: Boris Roessler/DPA via Getty Images
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As Europe’s economic outlook darkens, more funds are turning against the euro.
Manulife Asset Management, which oversees $364 billion globally, is shorting the currency in one of its funds on worsening economic data, growing political fault lines and the European Central Bank looking increasingly likely to engage in more easing. The risk in holding European assets means M&G Investments portfolio manager Wolfgang Bauer is short the euro as a hedge.