ING: Strong demand for euro call options amid prospect of rate cut in the US

On August 15, Jinshi Data reported that ING Bank said that the prospect of a rate cut by the Federal Reserve and a slowdown in the US economy are supporting the euro. The options market has shown an increased demand for betting on the appreciation of the euro. Analyst Chris Turner stated in a report that since 2022, bullish options for the euro have surpassed bearish options for the first time. Bullish options expect the currency to pump, while bearish options bet on the currency to decline. Turner said that despite the prospect of European fiscal consolidation and widening sovereign debt spreads possibly reappearing in September, the short-term view will maintain a bullish stance on the euro.

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