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
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