Pimco, one of the world’s biggest asset management firms, is betting that euro could drop to $1.20 over the next three to six months, shrugging off its recent rally. Pimco’s position would have the dollar rising more than 10% from its current $1.3876 to the euro, which strengthened sharply Thursday on the ECB’s announcement of fresh liquidity measures to contain the euro zone’s debt crisis. The ECB said it will cooperate with four other central banks including the Federal Reserve to provide banks with dollars over three funding operations. The latest measure came after funding stress continued to flare up in euro ... (full story)