Traders Bet Euro Rally Has Further to Run Ahead of G-7

Traders are growing more confident that the euro’s rally has further to run, with upbeat signals emerging just as Group-of-Seven finance ministers and central bank governors meet in Canada.

Many hedge funds are eyeing gains past $1.20, according to traders familiar with the transactions, who asked not to be identified because they aren’t authorized to speak publicly. Data from the Depository Trust & Clearing Corporation show that bullish euro bets through options outpaced bearish ones early Tuesday by the widest margin this year, extending Monday’s momentum.