EUR/USD risk reversals hit highest since May 2018 on waning put (bearish bets) demand
The EUR/USD three-month 25 delta risk reversals (EUR3MRR) are currently trading at -0.375 - the highest level since May. 14, 2018.
Put simply, the demand or the implied volatility premium for the put options (bearish bets) is weakest in eight months.
The drop in demand for the bearish bets validates the bullish view put forward by the EUR/USD pair's convincing break above 1.15 earlier this week.