EUR/USD pauses the previous day’s pullback from a three-month high around 1.1445-50 during Tuesday’s Asian session.

In doing so, the major currency pair seems to benefit from the market’s risk-on mood while ignoring the recent rebound in the US Treasury yields and downbeat signals from the options market.

That said, one-month risk reversal (RR) on EUR/USD, a measure of the spread between the call and put prices dropped for the first time in six days to -0.1000 at the latest, by the end of Monday’s North American session per data source Reuters.

While the risk-on mood can be linked to the cautious optimism over the US-Japan trade deal and Russia-Ukraine issues, fears of hawkish central bank actions challenge the EUR/USD buyers. Moving on, US Goods and Services Trade Balance for December, expected $-83B versus $-80.2B, may offer intermediate clues to the EUR/USD ahead of Thursday’s key US Consumer Price Index (CPI).

Read: EUR/USD Price Analysis: 100-DMA defends bulls around 1.1450

This article was originally published by Fxstreet.com.Read the original article here.

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