Traders’ Euro Optimism Has a Time Limit, Options Market Shows

Currency-options traders are signaling that the euro’s bullish momentum may not last past the coming weeks amid the lingering threat of a deepening trade war.

The common currency has soared about 4% this week, for its biggest three-day advance in almost a decade, after Germany unveiled plans for hundreds of billions of euros for defense and infrastructure spending, jolting yields on the nation’s government debt higher.