EURUSD revolves mid-1.0300s as options market bears jostle with Euro optimists
|EURUSD struggles for clear directions around 1.0360 heading into Wednesday’s European session. In doing so the major currency pair portrays the market’s mood considering the bearish outlook at the options market and the hopes of the Euro’s (EUR) further run-up amid easing risk-off mood and hopes of the US Federal Reserve’s (Fed) pivot.
That said, One-month Risk Reversal (RR) for the EURUSD, a gauge of calls to puts, printed the biggest daily negative figures since October 28 by the end of Tuesday’s North American session. In doing so, the daily RR flashed -0.117 figure during the three-day losing streak.
With this, the weekly RR turned negative to -0.173 and snapped a six-week uptrend.
It should be noted that the options market might have traced the market’s hopes of firmer US Retail Sales and the allegations that Russia fired rockets toward Poland. However, the latest headlines from the Associated Press (AP) quote an anonymous US official’s findings that the missile may have been fired by Ukraine.
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