Bernie Sanders’s Advance Has Some Traders Betting on Euro Gains
- Hedge funds bet dollar could face pressure on Sanders gains
- Euro has defied predictions of a recovery in Bloomberg survey
Bernie Sanders
Photographer: Logan Cyrus/BloombergThis article is for subscribers only.
Options traders are beginning to hedge against a Bernie Sanders victory in the race for a Democrat presidential candidate by betting on gains for the euro.
Less than two weeks before voters cast their ballots in the first nominating contest in Iowa, hedge funds have been buying euro-dollar call spreads -- essentially bets that the dollar could come under pressure -- should Sanders’ chances of a victory increase, according to a Europe-based trader.