Euro Takes on a Bigger Role as De-Dollarization Advances
The euro is seeing a rise in the global currency options market. According to reports, traders have moved 15-30% of US dollar contracts to the euro. The development comes amid increased geopolitical tensions and trade wars. The move has also sparked renewed de-dollarization sentiment among market participants. De-Dollarization Advances As The Euro Takes Charge Source: FXstreet According to Oliver Brennan, options strategist at BNP Paribas SA, “ If we’re moving to an environment in which the European flow story is more important, then we could be moving to an environment in which it’s euro pairs which are driving everything. ” The euro has rallied 11% against the dollar this year. The figure marks the highest the euro has been since 2021. According to hedge fund manager Paul Tudor Jones, the dollar could fall another 10% over the next year. The recent rise in the euro’s role is likely due to increased uncertainties around US foreign policy and trade wars. The US hit three Iranian n...