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  • EUR/USD risk reversal drops to lowest since May 4, 2017.
  • Highlights demand for EUR puts over EUR calls in the options market.

The EUR/USD one-month 25 delta risk reversals (EUR 1MRR) fell to -1.075 today – the lowest level since May 4, 2017, indicating a rising demand for EUR puts (bearish bets).

The decline from the recent high of -0.225 (seen on June 7) only adds credence to Euro’s drop from 1.1852 to 1.1531 and indicates the investors are likely expecting a deeper drop in the common currency.