As France's political and fiscal risks rise, hedge funds are buying heavily into options that bet on the weakening of the euro against the US dollar. According to the latest data from the US Depository Trust and Clearing Company, in the past two days, the number of large transactions betting on the fall of the euro was more than double the number of transactions betting on the rise of the euro. Julian Weiss, head of G-10 foreign exchange options trading at Bank of America in London, said: “We are seeing an increase in demand for euro put options from hedge funds and real money investors.” The euro once fell to 1.1287 US dollars per euro on Thursday, the lowest since May 2025. Previously, the euro fell 2.5% against the US dollar in September, the worst monthly performance since July 2025. Concerns about France's next budget are dragging down the euro, while expectations of further US interest rate hikes have boosted demand for the dollar.

As France's political and fiscal risks rise, hedge funds are buying heavily into options that bet on the weakening of the euro against the US dollar. According to the latest data from the US Depository Trust and Clearing Company, in the past two days, the number of large transactions betting on the fall of the euro was more than double the number of transactions betting on the rise of the euro. Julian Weiss, head of G-10 foreign exchange options trading at Bank of America in London, said: “We are seeing an increase in demand for euro put options from hedge funds and real money investors.” The euro once fell to 1.1287 US dollars per euro on Thursday, the lowest since May 2025. Previously, the euro fell 2.5% against the US dollar in September, the worst monthly performance since July 2025. Concerns about France's next budget are dragging down the euro, while expectations of further US interest rate hikes have boosted demand for the dollar.