Hedge funds target euro downside amid France unrest
Turmoil drives demand for EUR/USD exotics, pushing up back-end euro vols
Hedge funds are piling into foreign exchange options that bet against the euro, including through more complex exotic structures, as political and financial unrest in France continues to weigh on the currency.
Euro/US dollar spot has fallen nearly 4% since the beginning of September following a sharp rise in French government bond yields. As protests and riots unfolded in France, EUR/USD briefly
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