Options markets are foreshadowing the euro's most significant weekly drop since July. This is happening against the background of growing expectations of an ECB rate cut next week. The key indicator of options, risk-reversal, reached the most "bearish" level in three months, reflecting the negative moods and positions of traders. The US employment report released last week undermined hopes that the ECB would lag behind the Federal Reserve in lowering interest rates, and this had a negative impact on the attractiveness of the euro. Traders are anxiously awaiting the release of key US inflation data, which may increase pressure on the euro. Although forecasts indicate a slowdown in consumer price growth in September, if the CPI is within forecasts or higher, the bearish trend in the euro will continue. Anonymous currency traders familiar with over-the-counter market operations report that hedge funds are rushing to strengthen their bearish positions on the euro this month. Currently, the euro is trading around $1.0934, having previously updated the mid-August lows at $1.0928 during the session. EUR/USD has been declining almost continuously since the last week of September. Data from the Depository Trust & Clearing Corporation (DTCC) Clearing House indicates that traders are set to further weaken the pair to the $1.08 mark.
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