EUR/USD put bias weakest in over two months, risk reversals show
|One-month EUR/USD risk reversals (EUR1MRR), a gauge of calls to puts on the single currency, jumped to -0.125 on Tuesday.
A negative print implies that put options or bearish bets are drawing stronger demand than calls or bullish bets. Therefore, the latest multi-month high of -0.125 indicates that the demand for put options or the bearish bias is weakest in over two months.
A bearish-to-bullish change in the sentiment would be confirmed once the gauge moves above zero. A positive reading was last observed on March 11, when the metric was hovering at 1.625.
Three-month risk reversals also show a weakening of put bias, according to Reuters data.
EUR1MRR
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.