Economics

After a month of pain, euro bulls look to Fed pause for relief

Slowing inflation and fading optimism about European growth sent the euro to its worst month since April 2022

The European Central Bank is expected to only switch to cuts later next year, after hiking and holding rates at their highest in more than two decades — making the European common currency an appealing longer-term bet. Picture: Getty

Investors who took out long positions in the euro could be in for some respite, even as a shaky outlook for the economy continues to stalk the common currency.

Slowing inflation and fading optimism about the region’s growth sent the euro to its worst month since April 2022. Short-term bets against the euro using currencies other than the dollar are growing in popularity.

Yet despite the headwinds, investors increasingly view fresh euro weakness against the ...