Expectations of a depreciating dollar are increasing! The options market is signaling its most pessimistic outlook ever.

According to the Securities Times APP, a commonly used indicator to measure investor sentiment shows that foreign exchange options traders are currently more pessimistic about the future trend of the US dollar for the next year than at any other time. It is reported that the Bloomberg US Dollar Index one-year term risk reversal index (an indicator of the cost of buying and selling a currency in the options market) shows that the premium of put options over call options has reached -27 basis points - the conversion of this indicator to negative indicates that traders have started paying a premium to hedge against the risk of US dollar depreciation in the next 12 months. This value is the lowest on record, based on Bloomberg data since 2011, and even exceeds the levels briefly touched during the market turmoil in the early stages of the pandemic five years ago.