Euro Options Point to Downside Risk Against Dollar, Scotiabank Says

EUR/USD is consolidating in a very tight range, according to Scotiabank strategists Shaun Osborne and Eric Theoret. The currency pair has been stuck in the mid-to-upper area of its recent band.

Options markets are flashing a warning: implied positioning suggests heightened downside risk for the euro against the US dollar. The signal adds a bearish tilt to the near-term outlook for the common currency.

While the pair lacks clear directional momentum for now, the options skew indicates traders are bracing for a potential break lower.