Before Friday's U.S. jobs data, price action in FX options was clearly concerned about EUR/USD breaking/extending the recent 14-month high at 1.1201, but not any more.

Option trade flows had seen strong demand and premium gains for sub 1-month expiry 1.1200-1.1300 strikes, which allow holders to buy EUR/USD at those levels if better than the spot price at expiry.
Those options are being pared.

Risk reversals are an option volatility trade that benefit from increased FX volatility in a particular direction.
The benchmark 1-month expiry 25 delta contract had posted new 4-year highs for EUR calls over puts at 0.4 amid the late August spot highs (EUR/USD topside over downside strikes), before quickly reverting to 0.1 EUR puts over calls (downside strikes).
The contract had recovered a 0.2 topside strike premium on Friday, before slipping to 0.1 EUR calls thereafter.

Implied volatility gauges the unknown yet key FX realised volatility that is crucial to an FX option premium.
It has fallen since the jobs data event risk premium was removed, and as familiar ranges and large option expiries are helping to limit volatility and contain price action, despite the impending U.S. CPI data.

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