Euro Is Riding a Wave of Confidence on Europe Pandemic Response
- Options show havens lose ground as the common currency shines
- Euro just completed its best two-month rally since early 2018
Photographer: Jim Dyson/Getty Images
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The euro’s best rally in more than two years looks set to extend, with a host of market metrics reflecting growing confidence in Europe’s pandemic response.
The currency completed its biggest two-month advance against the dollar and a trade-weighted index of its strength rose for a third quarter. At the same time, options are relaying optimism on multiple fronts -- signaling gains versus the greenback over the next three months, and a drop in bearish sentiment versus the yen, a traditional haven currency, to the lowest since January.