Bets Increase on Euro Slide to Parity With Dollar
- Options show the odds of parity in next year are a coin toss
- Funds bet more than $4 billion in notional value on parity
This article is for subscribers only.
Hedge funds are increasingly betting on a slide in the euro to parity with the dollar for the first time in two decades.
It’s the most popular wager in the options market among bets on a further drop in the common currency. Options pricing shows the odds of the milestone being hit in the next 12 months have risen to about 50%, a coin toss.