One-month risk reversal for the EUR/USD, a gauge of calls to puts, braces for the biggest weekly fall since October with the latest print of -0.187 by the end of Thursday’s North American session.
In doing so, the options market gauge drops for the second consecutive week as per the options market data on Reuters.
Not only the weekly signs but the daily figures also drop with -0.1000 at the latest, per Reuters.
The downbeat signals justify the US Federal Reserve’s (Fed) indirect confirmation of the March rate hike and hints of room for more lift-offs.
It should be noted, however, that the latest corrective pullback from the lowest levels since June 2020 could be linked to the market’s cautious mood ahead of the US Core PCE Price Index figures for December, as they’re considered the Fed’s preferred version of inflation. Forecasts suggest a 4.8% YoY figure versus 4.7% prior.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.