European Central Bank interest rate decision approaching, Euro put option demand rises to three-month high

As traders bet on the European Central Bank cutting interest rates next week, the options market shows that the euro is on track for its worst weekly performance since July. These contracts currently cover the ECB's rate decision on October 17. Last week's US jobs report challenged the notion that the ECB was lagging behind the Fed in rate cuts, weakening the attractiveness of the euro. According to forex traders, hedge funds have been increasing their short positions on the euro in over-the-counter trading since the US jobs data was released. (Bloomberg)