This pace terminating future, the FX futures marketplace used to be decreasing EUR longs. Extra not too long ago, EUR positioning may be very mini, Société Generale FX strategists word
Chance reversals to go back in opposition to flattish ranges
“EUR/USD’s acceleration above 1.10 over the past couple of weeks has pushed up both realised and implied volatility.”
“As the FX skew usually predicts more volatility on the USD upside, the switch to positive of short-dated EUR/USD risk reversals is an inversion.”
“This move is consistent with the positive vol/spot correlation, but as the spot stabilises, we’d expect risk reversals to return towards flattish levels.”
