The EUR/USD pair remains slightly higher. The pair is set to test resistance at 1.0785 and potentially 1.09, ING economists report.
The options market becomes more bullish
“Measures such as risk reversal – the cost of a 25 delta EUR/USD call versus a similar EUR/USD put – continue to move in EUR/USD’s favor.”
“Back in October, markets were willing to pay 2% more in volatility terms for a 3-month delta EUR/USD 25 put. That bias for euro puts has now been reduced to 0.67%. If the bias turns positive, in favor of EUR/USD call options, that would be a great time for the FX market.”
“The seemingly benign investment environment (despite the horrors in the Ukraine) likely has investors wanting to buy EUR/USD on dips.”
“EUR/USD bias today looks towards resistance at 1.0785 and potentially towards the 1.09 zone tomorrow, if the US CPI release compels.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
