EUR/USD justifies downbeat risk reversal as sellers approach 1.0500.

EUR/USD fades Friday’s corrective pullback from a five-year low, down 0.20% intraday around 1.0520, during Monday’s Asian session.

In doing so, the major currency pair justifies the bearish bias of the options market portrayed by one-month risk reversal (RR).That said, by the monthly print of 0.638, the RR reversed the March month’s rebound in April.

Looking deeply into the options market data, conveyed by Reuters, the weekly RR was the lowest since early March, down to -0.713.It’s worth noting that the hawkish expectations from this week’s Federal Reserve (Fed) meeting and the economic fears emanating from the bloc, mainly due to the Ukraine-Russia crisis, exert downside pressure on the EUR/USD prices of late.

AUD/USD under pressure around 0.7050 as China stokes growth concerns.AUD/USD consolidates recent losses around the multi-day bottom near 0.7050 amid a holiday-thinned Asian session. Mounting covid cases in China and stringent lockdowns pose risk to global recovery. Markets remain risk-averse, seeking safety in the US dollar. 


USD/JPY recovers its intraday losses, DXY strengthens ahead of hawkish Fed.USD/JPY has moved above 130.00 firmly as DXY attracted bids on rate hike expectations. BOJ’s ultra-loose monetary policy has brought another bearish impulsive wave for the yen. Uncertainty ahead of the Fed’s rate announcement has underpinned the risk-off impulse.


Gold tumbles below $1,890.00 on Fed rate hike expectations, US PMI eyed.Gold (XAUUSD) Price has slipped below $1,890.00 as the US dollar index (DXY) has been strengthened on bolstering expectations of a decent rate hike by the Fed. The uncertainty over the announcement by the Fed is forcing investors to hide behind the DXY

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