OctaFX | OctaFX Forex Broker
Open trading account
Back

NZD/USD risk reversals hit highest since January 2018 on falling demand for Puts

Risk reversals on NZD/USD, a gauge of calls to puts on the Kiwi, jumped to the highest level since January 2018 on Monday, indicating investors are positioning for further strength in New Zealand's currency.

One-month risk reversals have risen to -0.475, a level last seen on Jan. 30, 2018. The gauge stood at -0.825 on July 9.

The negative number indicates the implied volatility premium for put options (bearish bets) on the NZD is higher than that for calls. So, a rise from -0.825 to -0.475 indicates the demand or premium claimed by NZD puts has dropped significantly over the last six days.

As of writing, NZD/USD is trading at 0.6735, having found acceptance above the 200-day moving average of 0.6709 on Monday.

NZD1MRR

 

PBOC Deputy Governor: Yuan globalization faces opportunity amid trade conflict

Deputy Governor of China’s central bank, People's Bank of China, Pan Gongsheng is crossing the wires during early Tuesday.
Read more Previous

EUR/USD: 21-day MA has emerged as strong hurdle ahead of the EC President vote and US data

EUR/USD's corrective bounce from the July 9 low of 1.1193 seems to have stalled with the 21-day moving average (MA) proving a tough nut to crack since
Read more Next
Start livechat