Euro downside bets jump to highest level since March 2020
US Commodity Futures Trading Commission data shows bets on a falling euro rose to 11.8 billion euros amid concerns over unrest in France.
Translated by Qiyas from الجريدة — Original source
Hedge funds have increased their bets on a euro decline to the highest level since March 2020. Data from the U.S. Commodity Futures Trading Commission, released on Friday and compiled by Bloomberg, showed that leveraged traders held positions betting on a weaker euro worth approximately 11.8 billion euros, equivalent to $13.2 billion, for the week ended October 20.
Net short positions also rose by 1,305 contracts, reaching more than 94,000 contracts, according to Bloomberg.
These moves come amid escalating political and financial turmoil in France, growing concerns over the public debt crisis and European growth prospects, uncertainty surrounding the European Central Bank’s interest rate trajectory, and the possibility of a widening gap with the United States.
The unrest in France is fueling investors’ worries about the country’s financial outlook, after borrowing costs hit their highest level since 2002 earlier this week.
With plans for further protests, asset managers are assessing whether the prolonged turmoil could weaken economic growth, undermine investor and consumer confidence, and make it more difficult for the government to implement its plans to cut spending and reduce the deficit.
