EUR/USD put value jumps to highest since early May 2017

• The EUR put option value has hit a 27-month high. 
• The rising demand for the EUR puts indicates the investors are likely preparing for a deeper drop in the common currency. 

The one-month 25 delta risk reversals (EUR1MRR) dropped to -1.2 today - the lowest level since May 3, 2017 - meaning the implied volatility premium for the put options (bearish bets) or the demand for the put options has hit the highest level in 27 months.

A week ago, the risk reversals stood at -0.90, while the recent high of -0.60 was registered on July 31.

The steady decline indicates the sentiment in the options market has turned bearish. It adds credence to the bear pennant breakdown seen on the EUR/USD daily chart.

Indeed, times are tough for the common currency.

EUR1MRR