EUR/USD ignores bullish options market signals with mild losses below 1.1000

EUR/USD remains on the back foot for the fourth consecutive day, down 0.10% intraday around 1.0970 during Monday’s Asian session. In doing so, the major currency pair respects firmer US dollar amid risk-off mood while paying a little heed to the options market signals suggesting buyer’s dominance.

That said, One-month risk reversal (RR) for the EUR/USD, a gauge of calls to puts, rose consecutively in the last three weeks with the latest prints of 0.381. It’s worth noting that the daily RR drops to -0.054.

The US Dollar Index (DXY) approaches a three-week-old resistance line near 99.10, around 98.90 by the press time, as headlines suggesting further challenges for Ukraine and China’s covid conditions underpin the greenback’s safe-haven demand. Also favoring the US dollar are the hawkish comments from the Federal Reserve (Fed) policymakers.

Read: US Dollar Index approaches 99.10 hurdle amid risk-off mood, yields, NFP in focus

Looking forward, a light calendar on Monday highlights risk catalysts as the key directives but major attention will be given to Friday’s US jobs report.