EUR/USD risk reversals - A rise to 1.25 may have revived demand for EUR calls

EUR/USD risk reversals turn positive.
One-month ATM vols rise, but still below recent highs.

Omkar Godbole FXStreet Contributor

EUR's rally to 1.25 levels seems to have boosted demand for the bullish bets (call options) on the common currency.

EUR/USD one-month 25-delta risk reversals are being paid at 0.125 EUR calls today as opposed to 0.025 EUR puts the day before yesterday, meaning EUR calls are in demand.

The one-month at the money options volatility gauge also increased to 7.5 from 7.25 but remains below the recent high of 7.80.

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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