The euro is cementing its position as the options market’s
Following the release of US inflation data, overall options activity rose about 25% from Monday, with the bulk of the action centered on the common currency as investors positioned for a weaker greenback.
Data from the Depository Trust & Clearing Corporation shows that euro–dollar contracts made up nearly 65% of all dollar-linked options volume on a notional basis. For comparison, the Australian dollar and sterling each accounted for less than 10%. Roughly two-thirds of the euro–dollar trades were structured to profit if the ...