💶Spot Euro - Risk Reversals Spread Rises At Highest Since Early August: Cable FX Macro

• There has been around a 90bps dip in the premium of bullish EUR/USD interest over the last couple of weeks. 1w EUR/USD risk reversals now trade at around 6bps, favouring puts

• Spot rate and riskies are diverging by the widest since early August. Back then, skewness led the EUR higher. Riskies turned in favour of EUR calls before the spot rate rallied from 1.08 to 1.12

• Despite the anomaly, the spread is still close to the 6m and 1yr median