EUR/USD remains gently bid. The pair is set to test resistance at 1.0785 and potentially 1.09, economists at ING report.“Measures such as the risk reversal – the cost of a 25 delta EUR/USD call option versus a similar EUR/USD put option – continue to move in favour of EUR/USD upside.” terms for a 3-month 25 delta EUR/USD put option. That skew for Euro puts has now narrowed to 0.67%. The skew turning positive – in favour of EUR/USD calls – would be a big moment for the FX market.
“The seemingly benign investment environment probably has investors wanting to buy EUR/USD on dips.” bias looks towards resistance at 1.0785 and potentially towards the 1.09 area tomorrow, should the US CPI release oblige.”Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
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