The safe-haven role of the US dollar is being questioned, while the euro's position in the Forex Options market continues to rise.
①Against the backdrop of escalating global trade wars and increasingly unpredictable U.S. policies, Forex traders are gradually abandoning the dollar in the options market in favor of the euro, making the euro's role in global Forex options trading increasingly significant; ②Although dollar trading still dominates in the currency market with a daily trading volume of up to 7.5 trillion dollars, this may be an early sign of a challenge to the dollar's status as the world's reserve currency.
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On Friday (June 20), EUR/USD rose for the third consecutive trading day, regaining the key level of 1.1500, trading around 1.1530 in the European session. U.S. President Trump stated that it would take two weeks to decide whether to intervene in the Middle Eastern conflict, which effectively eased market concerns about the escalation of the conflict and supported the euro. From a fundamental perspective, the core factors currently affecting the EUR/USD trend still revolve around geopolitical risks. According to Reuters, the situation in the Middle East has entered its eighth day, with ongoing clashes between Iran and Israel; however, Trump's easing remarks have led the market to consider the possibility of the U.S. avoiding direct military involvement.
The US dollar's safe-haven status is being challenged as the Options market rapidly shifts towards the euro.
Due to the unpredictability of US policies and the risks of global trade wars, traders are increasingly avoiding the dollar, while the euro's position in the Global Options market is becoming more prominent.
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