EUR – The euro gained more than 1.5% against the dollar on Wednesday as risk appetite returned to financial markets and energy and commodity prices eased from recent peaks that resulted from Russia’s invasion of Ukraine and the West’s retaliatory sanctions.
TD Securities noted that the move was driven in part by recent reports that the EUR was discussing a joint bond issuance to finance energy and defence spending. Concluded that “looking at the options market, the signal there has been a reduction in downside protection for the euro, so that could be signaling that the market thinks we may be moving on from the very acute phase of the shock.”
TD Securities noted that the move was driven in part by recent reports that the EUR was discussing a joint bond issuance to finance energy and defence spending. Concluded that “looking at the options market, the signal there has been a reduction in downside protection for the euro, so that could be signaling that the market thinks we may be moving on from the very acute phase of the shock.”