Traders say there is very good demand for downside protection in EUR/USD just over the turn of the year. 2 month 20-delta puts have been very active today, putting the strikes around the 1.3980 level, we’re told. Sounds like some of those hedgies that are “limit long” the risk trade are hedging their bets.
EUR/USD bottomed around the 1.4630 area once again and has bounced modestly to the 1.4655 area. Sellers remain toward 1.4670/80.