Euro Falls to Two-Month Low as Options Traders Boost Bearish Bets

The euro's slide is less about the size of the move than about the options market confirming it: bearish positioning at its highest since mid-August suggests traders are treating this as a trend, not a one-day reaction to the Fed. That matters most for anyone holding euro-denominated exposure or pricing cross-border risk, since hedging costs and sentiment tend to reinforce each other once positioning gets this one-sided. The open question is whether the euro notches a fourth straight decline, or whether stretched bearish bets leave room for a sharp reversal.