• EUR/USD breaks the 23.6% Fibo of 1.1711-1.1113 drop at 1.1254 drop for 1.1269 - opens 38.2% Fibo at 1.1341

• Big FX option sales of EUR puts vs calls (downside vs upside strikes) via risk reversals early Friday

• Benchmark 1-month 25d risk reversal sold 0.3-0.275 - from 0.9 last week and near 1.7 l-term high in early Oct

• 2-month 25d risk reversals were sold at 0.4 and 0.3 EUR puts over calls on a huge €700-million a leg today

• Paring of EUR puts and light demand for EUR calls suggests perceived EUR/USD downside risk is easing
EUR/USD 25 delta risk reversals-


EUR/USD daily chart (EBS)

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