EUR/USD - investors concerned with topside again

• Weekly risk reversals have shed bearish bias
• One-month risk reversals have trimmed put bias. 

Euro's spike this week despite strong US CPI has caught markets off-guard and risk reversals show investors are clearly seeking protection against further upside in the common currency. 

The EUR/USD weekly 25 delta risk reversals are being paid at 0.02 EUR calls (i.e. calls are claiming higher premium than puts). Four-days ago, the weekly risk reversals were being paid at 0.975 EUR puts. 

Meanwhile, one-month 25 delta risk reversals have retraced bearish bias, meaning the put premium has dropped ove rthe last few days. currently, the risk reversals are being paid at 0.475 EUR puts vs. 0.975 EUR puts on Feb. 12. 

The rise in the risk reversals also adds credence to the 250-pip rally in EUR/USD spot seen this week