EUR/USD battles options market’s heaviest bearish bias since October around 1.1150

One-month risk reversal for the EUR/USD, a gauge of calls to puts, braces for the biggest weekly fall since October with the latest print of -0.187 by the end of Thursday’s North American session.

In doing so, the options market gauge drops for the second consecutive week as per the options market data on Reuters.

Not only the weekly signs but the daily figures also drop with -0.1000 at the latest, per Reuters.

The downbeat signals justify the US Federal Reserve’s (Fed) indirect confirmation of the March rate hike and hints of room for more lift-offs.

It should be noted, however, that the latest corrective pullback from the lowest levels since June 2020 could be linked to the market’s cautious mood ahead of the US Core PCE Price Index figures for December, as they’re considered the Fed’s preferred version of inflation. Forecasts suggest a 4.8% YoY figure versus 4.7% prior.

Read: US PCE Inflation Preview: Dollar rally has more legs to run