EUR/USD struggles to justify upbeat options market signals near 1.0900
|EUR/USD retreats from intraday high to 1.0900 but stays defensive as bulls seek fresh clues to extend the four-week uptrend during early Monday. In doing so, the Euro pair portrays the Easter Monday holiday mood, as well as anxiety ahead of this week’s top-tier data/events.
Also read: EUR/USD stays defensive around 1.0900 despite hawkish ECB, US inflation, Fed Minutes eyed
It’s worth noting that the options markets remain bullish on the major currency pair despite the latest inaction.
That said, a one-month risk reversal (RR) of the EUR/USD price, a gauge of the spread between the call and put options, printed a mild daily gain to +0.020 by the end of Friday’s North American session. With that, the weekly RR was up for the third consecutive time, to 0.110 at the latest. Further, the monthly options market signals are also firmer so far in April after rising in the last two consecutive months.
While tracing the catalysts behind the options market optimism for the EUR/USD prices, the fears surrounding the US Dollar’s reserve currency status join the comparatively more hawkish comments from the European Central Bank (ECB), than the Federal Reserve (Fed).
Moving on, the Easter Monday holiday may restrict EUR/USD moves but the US Consumer Price Index (CPI) data and the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes will be crucial for clear directions.
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.