- EUR/USD touched a two-month low, extending losses in the wake of the Federal Reserve's latest rate increase.
- Options traders increased bets on further euro downside, positioning for continued dollar strength rather than a near-term reversal.
- The move keeps rate differentials in focus: a Fed hiking into the cycle reinforces dollar carry advantage over the euro area.
Quotes
“options traders stepped up bets on further weakness following the Federal Reserve's latest interest-rate increase”