EUR/USD - Risk reversals hit 10-day high

• Risk reversals rise to a 10-day high of 0.30.
• Add credence to move in EUR/USD spot above 1.20.

The EUR/USD one-month 25 delta risk reversals rose to a 10-day high of 0.30 yesterday, indicating increased demand for the bullish bets (call options) on the EUR.

The rise in risk reversals from the previous day's level of 0.16 indicates the bullish bias has strengthened post the release of the hawkish ECB minutes. It also indicates the break in the EUR/USD 1.20 is for real.