The Euro has sunk and moved in line with our last market update however our models are now signalling signs of greater downside risk than a short/medium risk reversal.
Macro view
Options - A bearish shift in market sentiment with put options (bearish bets) now claiming the highest premium in nearly four months - One-month risk reversals (EUR1MRR) (higher volatility put premiums), crossed below zero on the 10th February and fell to -0.425 last Friday, the lowest level seen since 29th October 2019