KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
What’s Driving the Euro Rally?
The euro surged past $1.17, hitting its highest level since September 2021 — and the options market is betting this rally has legs. Data from the Depository Trust & Clearing Corporation showed $56 billion in euro options traded Thursday, far outpacing other major currencies.
What stands out? Heavy interest in call options — contracts that gain if the euro climbs — especially those targeting a break of $1.20.
Why Now?
Fed rate cut expectations are weighing on the dollar.
Iran-Israel truce is reducing safe-haven demand for USD.
Germany’s fiscal expansion has revived eurozone growth hopes.
Trump’s tariff threats are pushing traders away from the greenback.
Momentum Check:
Euro is up 15% from February lows.
Trading near decade highs vs. the Chinese yuan.
Asset managers most bullish since early 2024.
Hedge funds least bearish since April.
Investor Signals:
“It’s full steam ahead for euro bulls,” says Shoki Omori, Mizuho Securities.
“The ECB ending its easing cycle and diversification away from USD could lift the euro further,” note OCBC strategists.
But Not Everyone’s Convinced:
ING’s Francesco Pesole warns that a clean breakout to $1.20 needs fresh fuel, like:
Resolution on US tariffs
Clear Fed rate direction
Treasuries stabilizing
MoneyMaster Take:
Options flows are flashing green for the euro — momentum is strong.
But macro catalysts still matter — watch tariffs, the Fed, and ECB guidance.
Near-term consolidation possible, but longer-term trend is euro-positive.
Our Move:
Traders can consider leveraging short-dated call spreads on EUR/USD, while longer-term investors might look to euro-denominated assets as a hedge against dollar weakness. Keep an eye on ECB President Lagarde’s speech next week for the next catalyst.
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