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Currency Traders Pile Into Dollar Call Options After Hawkish Fed

Currency Traders Pile Into Dollar Call Options After Hawkish Fed
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Currency Traders Pile Into Dollar Call Options After Hawkish Fed Currency traders including hedge funds are loading up on options wagers that the dollar will extend gains after the Federal Reserve’s hawkish policy decision this week reinforced expectations for higher US interest rates. Leveraged funds on Wednesday began buying dollar call options that gain in value if the greenback strengthens, according to traders. Demand extended into Thursday as investors digested the anti-inflation...

Currency Traders Pile Into Dollar Call Options After Hawkish Fed Currency traders including hedge funds are loading up on options wagers that the dollar will extend gains after the Federal Reserve’s hawkish policy decision this week reinforced expectations for higher US interest rates. Leveraged funds on Wednesday began buying dollar call options that gain in value if the greenback strengthens, according to traders. Demand extended into Thursday as investors digested the anti-inflation comments made by new Fed Chair Kevin Warsh.
the Federal Reserve’s (ORG) US (LOCATION) Fed (ORG) Kevin Warsh (PERSON)
Originally published by Bloomberg Markets Read original →