EUR/USD: Options market turns most bearish in three weeks

One-month risk reversal (RR) of the EUR/USD, a gauge of calls to puts, prints -0.080 readings for Tuesday, per the latest data from Reuters. The figures suggest that the pair traders are the most bearish since August 09 when the RR marked -0.083 level.

The same matches the EUR/USD pair’s latest price moves as the currency major refreshes intraday low as sellers attack 1.1800, down 0.11% on a day. In doing so, the quote snaps a four-day uptrend while keeping the previous day’s pullback from a one-month high.

That said, the bearish bias conveyed via RR could be linked to the month-end positioning, as well as the US dollar rebound.

A more important catalyst, at least for now, is Friday’s US employment data for August. Ahead of that, today’s US ADP Employment Change and ISM Manufacturing PMI for August will important to watch. Forecasts favor a firmer print of the early signal for Friday’s NFP, contrasts to a downbeat ISM Manufacturing PMI figures.

Read: EUR/USD retreats from daily highs near 1.1850 on USD rebound, German data eyed