EUR/USD is currently trading at 1.13 and could remain better bid over the next three months as a key options market metric shows the demand for the three-month put options (bearish bets) has dropped to one-year lows.
Three-month risk reversals (EUR3MRR), a gauge of calls to puts on the common currency, is currently trading at -0.112.
Indeed, the negative number indicates the demand or the implied volatility premium for the EUR puts options (bearish bets) is still higher than that for calls (bullish bets).
That said, the current print on risk reversals is the highest since April 2018, meaning the value of the EUR/USD bearish bets (puts) has hit 12-month lows.
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