• EUR/USD pressured by recent broad based USD gains and souring risk sentiment but still well contained

• Tight 1.1595-1.1615 range so far Thursday, Matches Wed's low. Support May 28/22 lows 1.1587-77

• Daily cloud 1.1629-83 now adding resistance, with 21-55 dma's around 1.1660 and key 200-dma 1.1682

• FX option implied volatility sits just above recent and 2026 lows - little perceived realised FX volatility risk embedded

• Risk reversals have increased EUR put over call vol premium to 0.375 - recognising raised downside risk to spot

• Huge FXO expiries continue to dominate - effect amplified with markets mostly sidelined into Friday's NFP data

• Related comment - Are FX markets underpricing June Fed risk?
EUR=EBS


(Richard Pace is a Reuters market analyst. The views expressed are his own)