EUR/USD 1-month risk reversal hit 13-month low, puts in demand

EUR/USD risk reversal drops to lowest since May 4, 2017.
Highlights demand for EUR puts over EUR calls in the options market.

Omkar Godbole FXStreet Contributor

The EUR/USD one-month 25 delta risk reversals (EUR 1MRR) fell to -1.075 today - the lowest level since May 4, 2017, indicating a rising demand for EUR puts (bearish bets).

The decline from the recent high of -0.225 (seen on June 7) only adds credence to Euro's drop from 1.1852 to 1.1531 and indicates the investors are likely expecting a deeper drop in the common currency.

EUR1MRR

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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