EUR/USD grinds lower around the intraday bottom of 0.9800 while staying on the way to posting the first weekly gain in three. Even so, the major currency pair prints a four-month downtrend heading into Friday’s European session.
That said, the market’s fears of recession and the central banks’ aggression might have favored the medium-term bears. However, the cautionary mood ahead of the key US/EU inflation data joins the quarter-end positioning to offer the latest gains.
Also read: EUR/USD pares first weekly gain in three around 0.9800 ahead of EU/US inflation data
It should be noted that the one-month risk reversal (RR) on the Euro, a gauge of calls to puts, prints the biggest daily figure in two weeks with the latest daily RR number of 0.165, per the latest data provided by Reuters. However, the weekly figure is still in the red while flashing the second negative print of -0.290 by the press time.
Furthermore, the monthly and quarterly RR numbers are also in favor of the EUR/USD sellers while registering -0.370 and -0.170 levels, per Reuters.
Given the broadly bearish bias of the options market, the EUR/USD prices are likely to fade from the recent corrective bounce off the 20-year low.
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