EUR/GBP risk reversals hit one-month low

EUR/GBP one-month risk reversals hit the one-month low of 0.225 after the UK and EU reached a deal on Brexit divorce terms on Friday.

Risk reversals

• The retreat from the recent high of 0.425 to 0.225 indicates falling demand for the EUR calls.
• So, the recovery in the EUR/GBP pair from the low of 0.8689 could be short-lived. As of writing, the pair is trading at 0.8790 and below the 200-day MA level of 0.8801.