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EUR/USD risk reversals hit one-month high

  • EUR/USD one-month 25 delta risk reversals rose to -0.6 – the highest level since June 12.
  • The data indicates falling demand for EUR puts, adds credence to a  short-term bullish reversal in EUR/USD spot.

The EUR/USD one-month 25 delta risk reversals (EUR1MRR) rose to a one-month high of -0.6 vs. the recent low of -1.1 seen on June 19.

The rise from -1.1 to -0.6 represents falling implied volatility premium for EUR puts or fall in demand for EUR puts (bearish bets) and validates the short-term bullish reversal, as indicated by the EUR/USD technical charts.

EUR1MRR

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