EUR/USD hit 7.5-week low, demand for put options is on the rise
|- EUR/USD fell to 7.5-week low on Monday, tracking a rise in the treasury yields.
- Investors expect a further slide in the EUR as indicated by increased demand for the EUR put options.
The American dollar surged across the board on Monday as the 10-year treasury yield neared the 3 percent mark.
The EUR/USD pair fell to 1.2197 - the lowest level since March 1 on Monday and looks set to extend losses further, as indicated by the rise in the implied volatility premium for the EUR puts.
As of writing, the one-month 25 delta risk reversals (EUR1MRR) are being paid at 0.325 EUR puts vs 0.025 EUR calls on April 17 (also the recent high).
EUR1MRR
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