Euro continues to rise amid declining interest in dollar and growing confidence in European economy

Euro trading volumes in the currency options segment exceeded $56 billion on Thursday. The growing interest in the euro is explained by an increase in so-called call options, which become profitable when the euro rises against the dollar.

The rising interest in the euro comes amid declining confidence in the US currency due to uncertainty in the country’s trade policy and fears of an economic slowdown. Meanwhile, the eurozone is showing signs of recovery, particularly after Germany announced large-scale fiscal spending plans, which is supporting optimism about the region's economy.

According to data from the Commodity Futures Trading Commission (CFTC), asset managers are showing the most optimistic sentiment toward the euro since 2024. However, experts, including ING strategist Francesco Pesole, warn that changes in the tariff situation, US Treasury yields, or the Federal Reserve's interest rate plans will be necessary for further growth above $1.20 per euro.