Dislikedyesterday some hedge funds bought options worth 2bln... for a period of 3 month (expiring in 3 months)... aiming 1.25/1.20. good luck with your idea anyway, future will show who is rightIgnored
Doesn't mean a fall wont happen...but it is a huge leap to correlate near at the money puts in EU to bets (positions) going short.
Fundamentally there is a lot of fallout if the dollar continues to gain value. There will be a lot of pressure to deflate the dollar if the Euro Zone cannot put its currency back on a stable track. The US is beginning to create some jobs and a strong dollar minimizes foreign purchasing power slowing export production and increases inflationary pressures domestically. The last thing the US fed wants to do is face a battle with inflation in a stagnant economy...raise interest rates or deflate currency? Stagflation anyone?
Just my 2 cents.