According to reports, the EUR/USD risk reversal indicator is regaining a premium on bullish positions, indicating that the bullish trend in the foreign exchange options market is picking up. Following the tariff announcement on April 2, market sentiment was strongly bullish on the euro, driving the risk reversal index to a five-year high. However, as EUR/USD's current exchange gains were blocked around 1.1830, and positions were overcrowded, the indicator began to decline. The US dollar then rebounded, causing the risk reversal indicator within 3 months to briefly turn bearish, that is, the premium for put options was higher than for call options, but this trend did not continue. At present, the EUR/USD risk reversal indicator within 3 months has recovered to its highest level in three weeks. The implied volatility of the 25 Delta Euro call option is approximately 0.4 points higher than the equivalent put option. This indicates that traders are once again optimistic about EUR/USD's upside potential, although confidence remains cautious.

Zhitongcaijing · 07/22/2025 08:49
According to reports, the EUR/USD risk reversal indicator is regaining a premium on bullish positions, indicating that the bullish trend in the foreign exchange options market is picking up. Following the tariff announcement on April 2, market sentiment was strongly bullish on the euro, driving the risk reversal index to a five-year high. However, as EUR/USD's current exchange gains were blocked around 1.1830, and positions were overcrowded, the indicator began to decline. The US dollar then rebounded, causing the risk reversal indicator within 3 months to briefly turn bearish, that is, the premium for put options was higher than for call options, but this trend did not continue. At present, the EUR/USD risk reversal indicator within 3 months has recovered to its highest level in three weeks. The implied volatility of the 25 Delta Euro call option is approximately 0.4 points higher than the equivalent put option. This indicates that traders are once again optimistic about EUR/USD's upside potential, although confidence remains cautious.