Short-term Trump FX trades ‘dead’ as euro rallies

- By Joe Parsons
- @Joe_Parsons416
- 11 Mar 2025

The so-called Trump trade of going long the US dollar via foreign exchange options has seemingly come to a sudden stop following the euro’s massive rally last week, forcing traders to U-turn on their bets.

“I think the Trump trade is now dead and all the USD calls that were bought in various forms are either worthless or unwound,” says an FX options trader at one UK hedge fund.

The move also created hedging headaches for market-makers trying to manage their options exposures as euro/US dollar

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