EUR/USD struggles to justify upbeat options market signals near 1.0900

EUR/USD retreats from intraday high to 1.0900 but stays defensive as bulls seek fresh clues to extend the four-week uptrend during early Monday. In doing so, the Euro pair portrays the Easter Monday holiday mood, as well as anxiety ahead of this week’s top-tier data/events.

Also read: EUR/USD stays defensive around 1.0900 despite hawkish ECB, US inflation, Fed Minutes eyed

It’s worth noting that the options markets remain bullish on the major currency pair despite the latest inaction.

That said, a one-month risk reversal (RR) of the EUR/USD price, a gauge of the spread between the call and put options, printed a mild daily gain to +0.020 by the end of Friday’s North American session. With that, the weekly RR was up for the third consecutive time, to 0.110 at the latest. Further, the monthly options market signals are also firmer so far in April after rising in the last two consecutive months.

While tracing the catalysts behind the options market optimism for the EUR/USD prices, the fears surrounding the US Dollar’s reserve currency status join the comparatively more hawkish comments from the European Central Bank (ECB), than the Federal Reserve (Fed).

Moving on, the Easter Monday holiday may restrict EUR/USD moves but the US Consumer Price Index (CPI) data and the latest Federal Open Market Committee (FOMC) Monetary Policy Meeting Minutes will be crucial for clear directions.