Euro Bears at Risk as Inflation Bets Put Hawkish ECB in Play
- Swaps and bond breakevens surge to surpass ECB’s 2% target
- Any hawkish signals could bring euro relief rally into play
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Thomas Lohnes/Getty Images
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A near-vertical rally in inflation wagers in Europe is boosting the likelihood of a hawkish surprise from the European Central Bank on Thursday, a move that could knock extremely bearish euro bets out of the water.