By Vassilis Karamnis, Bloomberg Markets Live strategist and reporter
Price action on Tuesday confirmed traders’ bias toward a stronger euro, even with no fresh stimulus, valuations already reflecting tailwinds and rate differentials moving the other way.
Despite the common currency trading near a five-month high, fresh demand emerged from a mix of names, sending it to a fresh cycle peak. According to Europe-based interbank traders, hedge funds were active in building a bigger long position, in both spot and options markets, while real-money desks were also active.
