- The value of the EUR puts (bearish bets) has hit the lowest since Aug. 1.
- The options market data indicate the EUR/USD could witness a bullish reversal.
The EUR/USD one-month 25 delta risk reversals (EUR1MRR) have risen to -0.575 – the highest level since Aug. 1.
The data indicates that the demand or the implied volatility premium for the cheap out of the money EUR is currently at its lowest in over three months.
The falling demand for the EUR bearish bets likely indicates that investors are expecting a stronger recovery rally in the EUR/USD.
At press time, the pair is trading at 1.1428, having clocked a high of 1.15 yesterday.