Thursday, July 17, 2008

Euro fails to take 1.60 - extreme SSI eases

EURUSD – Speculative positioning in EURUSD normalized after a significant dollar rebound marked the end of a dramatic run on 1.60. Since last Friday – when the Speculative Sentiment Index Ratio hit a near 10-month low -3.17 – the pair’s bullish advance was steadily tempered with the extreme sentiment reading capitulating. Today, the euro’s SSI reading stands at -1.39 with 58% of the group short. This reading happens to sustain a steadily diminishing, weekly trend following the -1.71 figure from last Thursday and the -2.48 print from two week’s ago. The indicator’s details confirm the ratio’s move back to parity. Long positions were a modest 0.5% weaker than yesterday, but a significant 26.6% stronger than last week. Showing the lack of interest in the pull back, shorts were only 0.6% above Wednesday’s levels and 6.6% weaker than last Thursday. Overall, the dramatic price action hasn’t drawn many volatility seekers as open interest has grown only 4.3% over the week and now stands 3.1% above the monthly average.

click to enlarge

source: Euro SSI Extreme Eases After The Currency Fails To Take 1.60, Thursday, 17 July 2008

No comments: