Coronavirus Scare Highlights Euro's Vulnerability to Market Shocks
- Currency hits three-year low as virus fears subvert bull case
- Banks cut forecasts as hopes for an economic rebound fade fast
This article is for subscribers only.
This was supposed to be the year of the euro. Instead, the currency is extending its worst annual start since 2015 as the coronavirus scare highlights its deep vulnerability to wider market shocks.
The shared currency has already lost more than 3% this year, forcing banks to tear up earlier upbeat predictions, and there is little relief in sight. Its slump to the lowest level since 2017 is now leading hedge funds to add to short positions and options traders to boost bearish bets.