euró

FX OPTIONS: we have noted an increasing appetite for EURUSD calls 1-3months expiry during the last few days. Additionally some have sold off puts with strikes under the 1,23-1,24 floor to finance the cost of the bought calls. Objectively this offers quite decent risk/reward in case of further risk appetite in the market during the coming weeks.

FX OPTIONS cont: However we do not believe in a sustained risk rally at this point and therefore we suggest giving some attention to supplement the EURUSD trade with a hedge strategy in USDJPY where a notable downside buying interest has been seen in the last 24 hours.