TREE NEWS reports: Hedge funds have bought options betting on a weaker euro against the dollar, with large trades wagering on a decline outnumbering bullish wagers by more than two to one over the past two days. The euro fell to $1.1287 on Thursday, its lowest since May 2025, after dropping 2.5% against the dollar in September, its worst monthly performance since July 2025. Concerns over France’s next budget are weighing on the currency, while expectations of further US rate hikes are boosting dollar demand.
Hedge Funds Double Down on Shorting Euro as French Risks Mount
AI take
The positioning shift matters more than the spot move: options flow skewed more than two-to-one toward euro weakness suggests hedge funds are treating French budget risk as a durable theme rather than a headline trade. That matters for anyone with unhedged euro exposure into year-end. The open question is whether the budget standoff produces a concrete catalyst or simply grinds on, and whether dollar strength continues to be driven by US rate expectations rather than euro-specific stress.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.
Related News
2m ago
Oil Prices Tick Higher as Trump Floats Stepped-Up Bombing of Iran After Midterms
4m ago
Trump Says Continued Rate Hikes Are ‘Pretty Bad’
9m ago
Ukraine Says Russian Drone Hit Nuclear Research Facility in Kyiv
10m ago
Eli Lilly: Foundayo Linked to Lower Long-Term Predicted Risk of Type 2 Diabetes and Cardiovascular Disease
14m ago
EU Says UK Decides How to Manage Its Relationship With the Bloc
35m ago
Huawei and Seres Sign New Five-Year Cooperation Agreement