This Hasn’t Happened Since 2009

With the dollar having given up nearly all of its post-election gains…

BBGDolllar

…and with yields still sliding…

Yields

…and with the political risk premium now squarely off the euro (thanks Macron) and on the greenback, it probably shouldn’t surprise you that one-year 25d risk reversals now trade at ~52 bps in favor of EUR puts.

That’s the least bearish sentiment since late 2009:

RiskReversal

 

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