EUR/USD rebounds above 1.1200 after hitting a May 2025 low as traders digest news of a snap Spanish election and navigate triggered option barriers.
The EUR/USD pair experienced significant volatility following reports of a snap election in Spain, which initially drove the currency to its lowest level since May 2025. The decline was exacerbated by hedge-fund selling that triggered specific option barriers, though the pair demonstrated resilience by recovering over 50% of the losses to trade back above the 1.1200 level.
The drop was triggered by reports of an early election in Spain combined with hedge-fund selling that hit option barriers.
The pair has recovered from its lows and is currently trading back above 1.1200.
The EUR/USD pair dropped to its lowest level since May 2025 following reports of a snap Spanish election. While hedge-fund selling and triggered option barriers initially accelerated the decline, the currency pair has since recovered over 50% of the losses to trade back above the 1.1200 level.
The decline was driven by reports of a snap election in Spain, which prompted hedge-fund selling and triggered pre-set option barriers in Asian trading.