Markets Are Complacent on Euro as German Vote Raises Parity Risk
- Options market shows majority of euro bets favor more gains
- Surprise outcome could push euro below $1.03, Pepperstone says
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Euro traders risk getting too comfortable as the clock ticks down to German elections this weekend.
There’s an unusual calm in the derivatives markets: the majority of euro options expiring the day after Sunday’s vote tilt in favor of more gains and bearish sentiment on the common currency has faded. Stock markets are also pricing a benign outcome, with Germany’s benchmark DAX gauge at a record high.