Euro Attracts Bullish Options Buyers as Currency Goes Off Script

The euro is the second-best G-10 performer against the dollar over the past month, defying expectations that the energy shock caused by the Middle East war would hit Europe’s economy and drag the currency lower.

More than seven weeks into the war, the euro is trading near $1.18, roughly the same level as before the US and Israel launched strikes against Iran. Looking ahead, options traders say that a mix of steady prices and low volatility is creating even more demand for bullish bets.