Risk reversals hit 3.5-month highs on increased call demand. Call option gives holder a right to buy the underlying asset at predetermined price on or before a predetermined date. One-month risk reversals on USD/JPY, a gauge of calls to puts, is currently trading at -1.112 – the highest level since April 24. The negative number indicates the implied volatility premium for calls (bullish bets) is lower than that for puts (bearish bets). The current reading, however, is the highest since April 24, meaning the bearish bias is weakest in over three months. Put simply, investors are adding bets to position for strength in the US dollar. After all, the US Federal Reserve (Fed) delivered a not-so-dovish interest rate cut on Wednesday. Notably, Fed’s President Powell referred to the rate cut as a mid-cycle adjustment, dashing hopes of further easing over the coming months. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next PBOC stays on hold after Fed rate cut FX Street 4 years Risk reversals hit 3.5-month highs on increased call demand. Call option gives holder a right to buy the underlying asset at predetermined price on or before a predetermined date. One-month risk reversals on USD/JPY, a gauge of calls to puts, is currently trading at -1.112 - the highest level since April 24. The negative number indicates the implied volatility premium for calls (bullish bets) is lower than that for puts (bearish bets). The current reading, however, is the highest since April 24, meaning the bearish bias is weakest in over three months. Put simply, investors… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
