Home EUR/USD options market is positioned for EUR weakness

EUR/USD options market is positioned for EUR weakness

Updated: 20 Jan. 2021 | 04:27

One-month risk reversals on EUR/USD, a gauge of calls to puts, shows an additional premium for puts over calls, a sign of pick up in options that would protect against a decline in the shared currency.

The gauge is currently trading at -0.475 in favor of put options or bearish bets, having hit a low of -0.632 early this week. That was the lowest level since May.

EUR/USD is trading near 1.2145 at press time, having dropped from 1.2349 to 1.2053 in the nine trading days to Jan. 18.

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