FX & Indexes
Good morning everyone,
Let’s start with FX:
BLOOMBERG DOLLAR RISK REVERSAL vs DXY
On a monthly expiration the risk reversal has created a bearish divergence as traders covered their put. This index is an aggregated of risk reversal against USD from GBP, EUR, AUD, JPY, CHF etc.. so as it points downward we can see for exmaple cable bouncing back up.