EUR/USD: Bearish bias is strongest since Feb. 27

• EUR/USD risk reversals hit the lowest level since Feb. 27. 
• The decline indicates solid demand for the EUR put options (bearish bets). 

The EUR/USD one-month 25 delta risk reversals (EUR1MRR) fell to -0.525 today - the lowest level since Feb. 27, signaling the implied volatility premium for the EUR put options is significantly higher than that of the EUR calls. 

About ten days ago, the risk reversals gauge stood at 0.025, meaning the implied volatility premium for the EUR calls was more than the premium for puts. The sharp decline in the risk reversals shows increased demand for the EUR puts and indicates the investors are prepping for a deeper pullback in the EUR/USD spot. 

EUR1MRR