EUR/USD risk reversals hit one-month low as market favors puts (bearish bets)
The EUR/USD one-month 25 delta risk reversals (EUR1MRR) are currently trading at -0.45 in favor of the EUR put options.
That reading is the lowest since Dec. 17. Put simply, the demand or implied volatility premium for put options (bearish bets) has hit a one-month high.
Notably, risk reversals topped out at -0.10 six days ago, which validates the EUR/USD pair's drop from 1.1570 to 1.14.