Forex Flash: Low volume means worth considering hedging EUR/USD - Societe Generale

FXstreet.com (Barcelona) - With volume low, Sebastien Galy, Senior FX Strategist at Societe Generale believes that investors should consider hedging EUR/USD downside.

He writes, “Consistent with our calls, USD/JPY risk reversals moved back into positive territory, the EUR/USD vs EUR/GBP 1M vol spread widened, and the USD/CHF 3M vol decreased. With volatility easing and the EUR/USD bouncing, it is time to consider cheap downside hedges via options. We recommend buying a EUR/USD 3M put spread 1.26/1.22 totally financed by selling a call 1.32 KI 1.29.”