EUR/USD fails to extend the previous day’s recovery moves and stays inside the weekly range surrounding the 1.0490-570 area. That said, the major currency pair takes rounds to 1.0524 by the press time of Wednesday’s Asian session.
In doing so, the quote portrays the options market’s indecision, as well as anxiety ahead of the key Federal Open Market Committee (FOMC).
That said, the risk reversals (RR) of the EUR/USD, a measure of the spread between the call and put prices, remain dicey on a weekly and monthly basis despite the daily print rebound to 0.125. It’s worth noting that the weekly and monthly RR prints recover from the previous negative readouts with 0.013 figures.
Given the options market’s indecision, as well as hopes of a disappointment from the Fed, considering the 0.50% rate hike being mostly priced in, EUR/USD prices may witness a rebound should the Federal Reserve (Fed) chose not to go beyond the limits already anticipated.