The EUR/USD justifies the options market's hesitation ahead of the Fed meeting.

The EUR/USD currency pair flops to continue yesterday’s recovery movements and stays within the weekly target range of 1.0490570. This means that the main currency pair (EUR/USD)

May 04, 2022 - 11:16 AM 271 views

The EUR/USD justifies the options market's hesitation ahead of the Fed meeting.

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© The EUR/USD justifies the options market's hesitation ahead of the Fed meeting.

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The EUR/USD currency pair flops to continue yesterday’s recovery movements and stays within the weekly target range of 1.0490570. This means that the main currency pair (EUR/USD) was rounded to 1.0524 at the end of Wednesday’s Asian session press time.

 If so, the quote is ready to depict the option’s market hesitation and the nervousness before the vital Federal Open Market Committee Meeting (FOMC).

 A measurement of the spread between the call and put prices is called the risk reversal (RR) for the EUR/USD currency pair. Although the daily print recovered to 0.125, the monthly and weekly prints remained volatile. It’s important to note that the weekly and monthly recovery risks (RR) rebound from the previous negative readouts of 0.013 points.

 Given the options market's hesitation, as well as expectations of a Fed letdown, and with the 0.50 percent rate hike already increased, the EUR/USD pair values probably may watch a  recovery if the Federal Reserve (Fed) decides not to go beyond the previously expected bounds.

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