The euro emphasizes as a safe haven and bet on its arrival at this price against the dollar

The euro records the fastest recovery in the last fifteen years, as traders bet on achieving $ 1.20, and experts are trying to update their expectations about its performance in the future. The European currency reached its highest level in three years at the end of last week, as the economic uncertainty caused by US tariff policy raised questions about the role of the traditional dollar as a safe haven. Three-quarters of the option contracts purchased on Friday were aimed at favoring investors to increase the value of the euro, according to the information of the deposit and clearance business that provides financial registration and settlement services. The euro .. The upcoming expectations of traders say that hedge funds target the movement of the euro about $ 1.20. Strategists at Mizuho International believe that there are increasing opportunities for the united currency to this level- the highest since the middle of 2021 in the coming months. “The foreign exchange market is witness to the demand for the purchase of the euro, but the flow of structural diversity – aimed at spreading risks over markets or multiple assets – made the euro a favorite choice for many. From the fall in the value of the dollar in the global financial markets, while investors of the role of the green currency in the global financial system are re -evaluated after President Donald Trump caused serious fluctuations in the markets by applying customs tariffs and increasing the trade war with China at a new level. Improve. The euro trades 0.5% at $ 1.1413 at 07:45 hours in London. The euro track in 2025 so far has participants in the “Bloomberg” survey on foreign currencies, which number 51, does not expect the euro to rise above $ 1.15 this year. However, two of the traders living in Europe indicated that a large amount of transactions will be done on Friday, with the aim of taking advantage of more euro profits. They said the hedge funds target the Euro movement in the three months to the next six. According to the DTCC and Clearing Center Data (DTCC), the second largest trading volume of euro options is Friday. The bets quickly accelerated the euro height in the options market during the recent period. Known as ‘risk transformations’ ascended last week, an instrument that reflects market trends by measuring the demand for purchase or sale of currency contracts, as one -week contracts showed the highest miles to the rise of the euro five years ago. The fluctuation rates also jumped, which closed at the third highest level since 2010. Traders using financial leverage and investment institutions met in six months on the rise of the euro, according to the data of trading centers issued by the US Term Committee, and calibration on April 8. Euro -constructive structural factors are essential and in -depth factors. The expected additional spending by Germany after its historical decision to reduce its financial rules is one of the factors supporting the Euro region in the event of a global economic slowdown. At the same time, customs duties – regardless of their final level – will reduce the trade surplus of Europe with the United States, which means they need to invest less returns in the assets denominated in dollars. “It seems that the euro is on its way to not penetrating the levels at the beginning of the year. But the big demand for European traders is: to what extent the central banks in the region welcome the power of the currency, while not wanting to tighten economic conditions, especially because they are already concerned about the prospects for economic growth.” It is unclear whether the currency can maintain the high growth rate in the last days. Valentin Marinov also described the Credit Agricole Bank of the Man of the Euro-Dollar as ‘exposed to exaggeration in purchase’, and the bank is now being adjusted in the currency in a selling direction. Future challenges against the euro, Eric Nelson, a macro economic analyst at Wales Fargo, warned that any extra height in the euro would not be without challenges. He said: “Any transformation in backing currencies occurs regularly over the months and seasons, and not within days.” However, there is no doubt that the euro inherited some of the traditional role of the dollar as a safe haven, with increasing doubt about the US economy and thus about the green currency. Van Lu, head of the international currency division at the company “Russell Investments”, said that the euro was previously considered a currency of the risk, but that he had recently seen an increase in its value, regardless of whether the news was positive or negative. He concluded: “I notice a structural shift in the market that supports the euro in the medium term, especially with regard to its classification as a safe haven compared to other assets.”