Federal Reserve Chairman Kevin Walsh sends hawkish signal, leading to a surge in demand for US dollar call options in the foreign exchange market

Foreign exchange traders bought a large number of US dollar call options, betting that the US dollar would strengthen after Federal Reserve Chairman Kevin Walsh released hawkish signals. Tobias Jungmann, Head of Foreign Exchange Options at Bank of America, stated that large-scale US dollar call option buying is concentrated in the G-10 currency. James Swindell, a senior forex options trader at Barclays Bank, stated that there is significant demand for USD call options on EUR/USD and GBP/USD.