March 5, 2018
In 2017, the pain trade was no doubt being long the euro/U.S. dollar currency pair. After predictions of euro/U.S. dollar (EUR/USD) currency pair to parity failed in 2015 and 2016, market strategists were finally poised to collect on those bets as the combination of easy monetary policy in the Eurozone and an accelerating United States economy supported by a tightening Fed made it feel inevitable that the EUR/USD would hit 1.00. Someone should have told EUR/USD traders, who instead drove the world’s most widely traded currency pair up by 1,500 pips from near 1.05 to above 1.20.