EUR/USD options: Bull bias weakens ahead of ECB
|One-mont risk reversals on EUR/USD, a gauge of calls to puts, has retreated to 0.15 from 0.47 in the past six trading days – a sign of weakening demand for call options or bullish bets on the common currency.
The bullish bias has weakened, possibly due to speculation that the European Central Bank is growing uncomfortable with the euro's near 6% appreciation against the dollar from its June low.
While the central bank is widely expected to keep key policy tools unchanged on Thursday, some traders expect ECB's President Lagarde to talk down the single currency, given the inflation has turned negative for the first time since 2016.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.