EUR/USD hit 7.5-week low, demand for put options is on the rise

EUR/USD fell to 7.5-week low on Monday, tracking a rise in the treasury yields.
Investors expect a further slide in the EUR as indicated by increased demand for the EUR put options.

Omkar Godbole FXStreet Contributor

The American dollar surged across the board on Monday as the 10-year treasury yield neared the 3 percent mark.

The EUR/USD pair fell to 1.2197 - the lowest level since March 1 on Monday and looks set to extend losses further, as indicated by the rise in the implied volatility premium for the EUR puts.

As of writing, the one-month 25 delta risk reversals (EUR1MRR) are being paid at 0.325 EUR puts vs 0.025 EUR calls on April 17 (also the recent high).

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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