One-month EUR/USD risk reversals, a gauge of calls to puts, fell below zero on Monday, indicating investors are now adding bets (put options) to position for weakness in the common currency.
Risk reversals declined to -0.075 – the lowest since July 20 – having topped out at 0.675 on Aug. 5.
EUR/USD fell by 0.56% to 1.1732 on Monday as renewed coronavirus concerns weighed over the global equities and fueled demand for the safe-haven US dollar.