May 04, 2022 - 11:16 AM 271 views
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.