Hedge funds are betting against the euro, with short positions reaching a three-year high

As of the week ending October 20, leveraged funds increased their net short positions in euros by 1,305 contracts, reaching 94,100, the highest level since March 2020, corresponding to short bets of approximately 11.8 billion euros.

The turmoil in French politics, debt pressures, and escalating protests have heightened market concerns, dragging down the euro's performance. The euro fell 0.4% against the US dollar this week.