EUR/USD - Vols hit 11-day low, risk reversals still depressed

One-month at the money option volatility hit 11-day low of 6.30
One-month risk reversals ticked higher to 0.30 but still remain below the Nov. 15 high of 0.40.

Omkar Godbole FXStreet Contributor

Vols & risk reversals

The drop in the volatility is usually accompanied by an uptick in the underlying, i.e. EUR/USD could rise above the Nov. 15 high of 1.1861.
A move above 1.1861 would revive interest in the EUR calls and push risk reversal gauge above the recent high of 0.40.

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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