One-month risk reversal on EUR/USD, which measures prices of calls relative to puts, has risen to zero, extending the recovery from the low of -0.51 reached on Feb. 3.
The bounce to zero indicates that puts are no longer drawing extra premium relative to calls. In other words, the bearish bias seen a week ago now stands neutralized.
A potential crossover into positive territory would mean investors are adding bets (calls) to position for the rise in EUR/USD.
The currency pair is trading near 1.2128, having printed a low of 1.1952 earlier this month.
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