EUR/USD options markets tilted to the downside

CME Group’s advanced data for the 6EU7 contract expiring on August 4 showed OTM (‘out of the money’) Puts rising by 3K contracts vs. an increase of 1,958 contracts in OUT Calls.

In addition, ITM (‘in the money’) Puts rose by 267 contracts and ITM Calls increased by 279 contacts.

The Put/Call ratio ticked higher to 1.06.

EUR/USD faces downside pressures

EUR/USD charted an ‘outside day’ on Wednesday following the FOMC meeting, while it continues to retreat from 30-month tops recorded earlier in the Asian session on Thursday.

OTM Puts have increased significantly yesterday, mainly in the 1.1550 and 1.1350 strike prices, implying that investors stay poised for a potential leg lower, while insurance against this expected move is reflected in the increase of OTM Calls, basically in the 1.1800 and 1.1900 strike prices.