Euro Traders Get Nervous Over Economic Blow From Ukraine Crisis
- Volatility and demand for low-probability strategies intensify
- Hedging costs over the next week hit highest in 16 months
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Traders are increasingly hedging against declines in the euro as they brace for the damage that war in Ukraine could wreak on the European economy.
Given the region’s dependence on Russian fuels, the deepening crisis is throwing up a panoply of risks including the threat of persistently high energy prices that could derail recovery from the pandemic.