Group 1 - The continuous depreciation of the US dollar is increasing the hedging costs in global currency trading, breaking the long-held market consensus that hedging costs typically decrease when the dollar weakens [1] - A key indicator tracking the volatility of G10 currencies has seen its correlation with the dollar drop to the lowest level in seven years, indicating traders are preparing for more significant market volatility [1] - The surge in foreign exchange options trading volume this year, with average daily transactions exceeding the past 12 months, reflects heightened market activity and expectations of volatility [1] Group 2 - The implied volatility of the euro against the dollar has significantly increased, marking the largest recorded rise this year, indicating a shift in market sentiment [2] - Speculation around President Trump's inclination towards a weaker dollar is influencing market dynamics, as the current US administration appears committed to achieving this goal [2] - Despite reports that US trade negotiators are not including currency policy commitments in agreements, the Bloomberg Dollar Spot Index still experienced a decline, further fueling concerns about a weaker dollar [2]