In response to market turbulence caused by concerns about the US economy, macro-hedge funds are increasingly seeking foreign exchange options transactions that exclude the US dollar. Monday's deals involving the euro and the safe-haven currency yen were highly sought after. On the same day, US technology stocks recorded their biggest decline since 2022, and these two currencies easily became the most traded currencies by US depository and settlement companies, accounting for more than half of the total. Morgan Stanley strategists Zoe Strauss, David Adams and others wrote in a Monday report that options data shows that long positions on the euro are at their highest level since 2020. The euro surged after Germany's chancellor-designate Mertz promised to loosen fiscal spending.

In response to market turbulence caused by concerns about the US economy, macro-hedge funds are increasingly seeking foreign exchange options transactions that exclude the US dollar. Monday's deals involving the euro and the safe-haven currency yen were highly sought after. On the same day, US technology stocks recorded their biggest decline since 2022, and these two currencies easily became the most traded currencies by US depository and settlement companies, accounting for more than half of the total. Morgan Stanley strategists Zoe Strauss, David Adams and others wrote in a Monday report that options data shows that long positions on the euro are at their highest level since 2020. The euro surged after Germany's chancellor-designate Mertz promised to loosen fiscal spending.