EUR/USD risk reversal sheds bearish bias

One-month risk reversal on EUR/USD, which measures prices of calls relative to puts, has risen to zero, extending the recovery from the low of -0.51 reached on Feb. 3. 

The bounce to zero indicates that puts are no longer drawing extra premium relative to calls. In other words, the bearish bias seen a week ago now stands neutralized. 

A potential crossover into positive territory would mean investors are adding bets (calls) to position for the rise in EUR/USD. 

The currency pair is trading near 1.2128, having printed a low of 1.1952 earlier this month.