One-month risk reversal (RR) of EUR/USD, a gauge of calls to puts, drops for the second consecutive day by the end of Thursday’s North American trading. In doing so, the options market gauge flashes -0.175 figure, the lowest since September 29.

The bearish bias could be linked to the escalating odds of the US Federal Reserve (Fed) rate hikes. On the contrary, the European Central Bank’s (ECB) downward revision to the economic forecasts enables the ECB policymakers to reject the rate lift concerns.

A 31-year high US inflation data and firmer Treasury yields could be linked to the US dollar’s recent strength. However, today’s US Michigan Consumer Sentiment for November, expected 72.4 versus 71.7 prior, will be eyed for fresh impulse.

That being said, the EUR/USD pair grinds lower around the July 2020 levels, down 0.07% intraday near 1.1440 during early Friday.

Read: EUR/USD Price Analysis: Inches closer to 1.1420-10 support zone