25 Jan 2018
EUR/USD weekly risk reversals adopt a bearish bias ahead of ECB
- Risk reversals turn negative.
- Indicate investors seeking downside protection in EUR ahead of ECB.
EUR/USD weekly 25-delta risk reversals gauge fell to -0.05 yesterday, signaling a shift in the sentiment in the options market.
The negative print shows EUR puts claim premium over EUR calls, i.e. investors are likely seeking downside protection amid speculation that ECB's Draghi would try and talk down EUR today.
