The euro has just crossed the $ 1.20 threshold and no obstacle seems to prevent it from returning to its mid-February 2018 highs of $ 1.25. A movement that can be played with leverage by means of a turbo call.
The period of the strong dollar seems to be over. Raised to 1.05 against the European currency, the greenback has continued to depreciate since the arrival of the “Chinese” virus in Europe and the United States. Why? Quite simply because of the massive injection of liquidity (over 3.5 trillion dollars) from the Federal Reserve and the widening of the public debt of the United States to more than 120% of its GDP. However, if since the end of the Sixties, the first world power made finance its deficit by the whole world by imposing the dollar as international currency and currency of reserve, the tide is turning. The advent of the euro in the early 2000s began to challenge the supremacy of the dollar king, and the yuan is also on the rise. China has been reducing its share of US debt a few years ago and the trend will continue. The dollar should therefore lose its credibility in favor of other currencies and especially cryptocurrencies. In the very short term, announcements of further monetary easing measures following the Fed’s December 16 meeting could further weaken the greenback. Graphically, there is nothing to prevent the euro from returning to its best levels of mid-February 2018 at 1.25 dollars.
10.8 times leverage
The movement can be played with leverage by means of a turbo call. The selected certificate is issued by Société Générale (code: DE000SB0HNW8) without expiry and with a security threshold of $ 1.1184 below which the single currency must not fall. Otherwise, the call loses almost all of its value. Despite everything, the significant difference between the current price of the parity of 1.21 dollar and this safety threshold limits the risk profile and gives sufficient time to unwind positions in the event of an unfavorable movement of the European currency. Meanwhile, the turbo has an attractive leverage of 10.8 times. Thus, in the hypothesis of a further appreciation of the euro to 1.25 dollars for example, the call would gain 25.9%. Conversely, a decline in the European currency of 1.17 dollars, the turbo would lose 38.8%.
Our advice: buy a turbo euro / dollar call issued by Societe Generale (code: DE000SB0HNW8): expiry date: unlimited; level of funding: $ 1.1039; safety threshold: $ 1.1184; parity: 0.1 to 1; price: 9.29 euros; portion: 1.