EUR/USD: OPTIONS MARKET TURNS MOST BULLISH IN 10 WEEKS

One-month risk reversal (RR) for the EUR/USD, a gauge of calls to puts, rises the most since November 26 as per the latest options market data on Reuters.

That said, the daily RR figures for February 01 jumped to +0.110 while extending the previous day’s rebound. The weekly figures also portray bullish bias with a +0.210 level after declining for the two consecutive weeks in the last.

It’s worth noting that the US inflation expectations, as measured by the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, retreat from a two-week top. The same joins mixed Fedspeak and firmer US data to challenge traders ahead of the early signal to Friday’s US Nonfarm Payrolls (NFP), namely the US ADP Employment Change for January, expected 207K versus 807K prior.

It’s worth noting that the EUR/USD prices print a four-day uptrend around the weekly top, up 0.06% near 1.1280 at the latest.

Read: EUR/USD Price Analysis: Bulls eye 1.1315-20 resistance confluence