Euro Optimism Losing Mojo as Strategists Make a Bearish Turn
- Nomura unwinds longs; Deutsche Bank says euro heading to $1.18
- Options traders near the most bearish on the euro since June
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After surging this year to the highest since 2018 against the dollar, the euro is losing its luster and strategists are beginning to pull back on their bullish views.
The shared currency on Thursday touched the lowest level in more than two months -- breaking below $1.20 -- on concern the European Union is facing tens of billions of euros of lost economic output because of delays in rolling out vaccines. Nomura International Plc says it’s unwinding long bets on the currency in the short-term, while Deutsche Bank AG says the euro could be headed for levels last seen in November. Options traders, meanwhile, are near the most bearish since June.