EUR/USD risk reversals: Put bias strongest since February 12
|- EUR/USD risk reversals drop to lowest level since February 12.
- Indicates implied volatility premium for the EUR puts is on the rise.
The EUR/USD one month 25 delta risk reversals (EUR1MRR) fell to -0.925 today - the lowest level since Feb. 12. The risk reversals stood at -0.45 ten days ago.
The decline from -0.45 to -0.925 represents a rise in the implied volatility premium for the EUR puts. In simple terms, it means the demand for the EUR puts (bearish bets) is on the rise.
As of writing, the EUR/USD pair is trading at 1.1710, having clocked a low of 1.1676 yesterday. The common currency is oversold for close to three-weeks, as per the 14-day relative strength index (RSI), still, corrective rallies remain elusive.
EUR1MRR
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.