Economics
As Trade War Heats Up, Currency Whales Make Their Move
- Central banks seen moving $500 billion of reserves into euros
- Euro-area growth, Trump have FX managers hedging dollar risk
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For the first time in a decade, the world’s central banks are looking beyond the dollar to build their currency reserves.
With U.S. protectionism on the rise, a number of Wall Street strategists say the case for the euro has rarely been better. Existential crises that hobbled the European experiment have receded. A resurgent economy has spurred talk the region’s central bank will curb policies that drove euro yields below zero. And as President Donald Trump threatens a trade war with China, the European Union is pursuing free-trade deals all across Asia and Latin America.