The options market has positioned itself for a year-end drop, with the dollar at risk of posting its worst annual performance in eight years.
The Wisdom Financial APP observed that the US dollar is about to have its worst annual performance in eight years. The dynamics of the options market reveal that traders have already made preparations for further declines in the US dollar in the last few trading days of 2025. On Tuesday, the Bloomberg US Dollar Spot Index fell by 0.3%, hitting the lowest point since October 3. Looking back at the whole year, the index has already declined by 8.2%, likely setting a record for the biggest annual decline since 2017. Currently, the US dollar only needs a slight drop to achieve its worst annual performance in at least 20 years.
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