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Hedge funds turn to euro puts as France fiscal risks weigh on EUR/USD

Large euro option trades betting on declines outnumbered those aimed at gains by more than two-to-one over the two days to Oct. 1, according to DTCC data cited by Bloomberg.

Reported · Written up by our desk · Hedge Funds

Hedge funds are increasing their use of options to position for further weakness in the euro versus the US dollar, amid political uncertainty and fiscal pressures in France, according to a Bloomberg report cited by Hedgeweek.

The report points to Depository Trust & Clearing Corporation data showing that large options trades betting on a decline in the euro outnumbered trades positioned for gains by more than two-to-one over the two days to Oct. 1.

Julian Weiss, Bank of America’s head of Group-of-10 foreign-exchange options trading in London, said demand for euro puts has been rising among both hedge funds and traditional asset managers.

The euro fell to $1.1266 on Thursday, its lowest level since May 2025, after declining 2.5% against the dollar during September. That left the currency with its weakest monthly performance since July 2025.

Latest closeEUR/USD 1.133 ▼0.3%

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