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EUR/USD options market shows strongest bearish bias in 4.5 months

Risk reversals on EUR/USD, a gauge of calls to puts, fell to -0.375 on Thursday, the lowest level since June 19, indicating investors are adding bets to position for losses in the common currency. 

The negative number is the result of put options or bearish drawing higher demand than calls or bullish bets. 

EUR/USD has dropped by 1.4% this week on fears of another coronavirus-induced economic contraction. The European Central Bank (ECB) held rates steady on Thursday but hinted at a possible stimulus boost in December. 

 

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