EUR/USD hit 7.5-week low, demand for put options is on the rise

• EUR/USD fell to 7.5-week low on Monday, tracking a rise in the treasury yields. 
• Investors expect a further slide in the EUR as indicated by increased demand for the EUR put options.

The American dollar surged across the board on Monday as the 10-year treasury yield neared the 3 percent mark. 

The EUR/USD pair fell to 1.2197 - the lowest level since March 1 on Monday and looks set to extend losses further, as indicated by the rise in the implied volatility premium for the EUR puts. 

As of writing, the one-month 25 delta risk reversals (EUR1MRR) are being paid at 0.325 EUR puts vs 0.025 EUR calls on April 17 (also the recent high). 

EUR1MRR