For the week to Oct 20, leveraged funds increased net short euro positions by
1,305 contracts to 94.1k contracts, the largest since March 2020, equivalent to
roughly €11.8bln of bearish exposure. Market concerns tied to French politics
turmoil, rising debt pressures and protests weighed on the euro. Investors also
cited slowing Euro-area growth and limited ECB hiking scope, which could widen
US–Europe rate differentials. EUR/USD fell 0.4% on the week.