EUR/USD renews multiday top as risk reversal poses most bullish week since May 2020
One-month risk reversal (RR) on EUR/USD, a measure of the spread between the call and put prices, braces for the biggest weekly print since May 2020, around +0.550 at the latest per data source Reuters.
The big jump in options market catalysts could be well linked to the five-day uptrend in the daily RR, to 0.013 by the press time.
In addition to the options market signals, the European Central Bank’s (ECB) hidden acceptance for the sooner rate hikes and signals for a policy change, without giving many details though, also seem to underpin the EUR/USD bulls.
That said, the EUR/USD pair prices print a six-day uptrend to refresh the highest levels since January 14, up 0.20% around 1.1453 at the latest.
Moving on, EUR/USD pair traders will pay attention to Eurozone Retail Sales for December, expected 5.1% versus 7.8% prior, for intermediate clues ahead of the key US jobs report.
Read: Nonfarm Payrolls Preview: Win-win-win for the dollar? Low expectations, weak greenback point higher