Euro’s Year-End Rally Sees Cross Currency Swaps Climb to Record
- Common currency surges over holidays after weak year
- Cross currency basis climbs above zero in repeat of late 2018
This article is for subscribers only.
The battered euro is finishing the year strongly and setting up the case for better performance next year.
The common currency rose to its strongest level versus the dollar since August on Monday and cross-currency basis swaps -- a measure of demand for funding purposes -- climbed to the highest on record, Bloomberg Generic Prices show. While both moves mirrored a strong end to 2018, this time around options traders have also turned positive for coming months, in contrast to a weaker outlook a year ago.