LONDON, Jan 20 (Reuters) - Trader demand for protection against big swings in the euro in early February rose sharply on Tuesday, as concern grew over a possible rekindling of a trade war following
Traders Seek FX Hedges Amid Renewed Greenland Tariff Concerns
Impact of Tariff Risks on Currency Markets
LONDON, Jan 20 (Reuters) - Trader demand for protection against big swings in the euro in early February rose sharply on Tuesday, as concern grew over a possible rekindling of a trade war following U.S. President Donald Trump's tariff threats to Europe over Greenland.
Rising Euro Volatility
Euro two-week implied options volatility - a measure of demand for hedges against big price swings in that time - shot to almost 6%, the most since early December on Tuesday, according to LSEG data. Three-month options vol, which is considered more of a benchmark, hit its highest since late November, rising to 6.025%.
Sterling Options Performance
Implied options vol for sterling, another currency in the tariff crosshairs, rose to a two-month high of 6.464%.
(Reporting by Amanda Cooper; Editing by Dhara Ranasinghe)
