What created the profit for the following option? How could I as an investor have been aware of it and taken?

Question

advantage of its opportunity? EH07.NYB Euro Currency Index Futures,Mar 1,093.74 Mar 12 984.41 (900.40%)

Answer 1

Because of the high Balance of payment deficit in the US economy everyone was expecting devaluation of dollar which prompted investors to park their dollar holdings in Euro. They all came together and many converted to Euroholdings which sent the Currency futured index moving up on high demand for Euro and strengthening of Euro against dollar. It is said to be the reason for recent market crash where stock investors were trying to temporirily park their dollars in Euro and they were selling stocks to realise dollars which inturn where being converted inot Euro. So demand for Euro goes up and the index moves up. Those who saw this coming took advantage of it. That is all.