This had been supposed to the year when Euro is going to take the forefront. Instead, this currency has been extending its worst start annually since the beginning of the year 2015 as the scare of coronavirus has highlighted the deep vulnerability to the wider shocks in the market.
Shared currency has lost already over three percent in the year, forcing the banks to tear the earlier upbeat predictions and there’s a bit of relief in sight. The slump has been the lowest level since the year 2017 and is now leading the hedge funds for adding to the short positions and the options traders for boosting the bearish bets.
Euro has been facing an ambush by the anxiety which is there about the shock that the economy has been facing with the virus and the risks which are there politically from Germany ranging on to Ireland. Apart from this, weighing on common currency have been the Brexit risks which are not resolved as yet and the concerns which the United States might impose the import tariffs on the cars of Europe. The disappointing run of Euro in the year has been bringing a debate back about the basic flaws in design.
This currency which had been adopted in the year 1999, has been shared by as many as 19 countries from Germany which is the world’s fourth biggest economy to the tiniest economy of Malta. After gaining on greenback in first 10 years, Euro had seen the debt crisis of Europe hurt their prospects of becoming reserve currency for knocking dollar off their perch.
Slide in the euro sentiment is sharp at the banks.