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Euro Positioning Still Net Negative, But Growing Less Extreme

EUR/USD Ratio: -1.47
Signal: Bullish

Currency
Last Week
Present*
% Long
% Change in Positions Outstanding
Signal

EURUSD
-1.63
-1.47
41%
-6.55%
Bullish

EURUSD – The long-standing net negative Speculative Sentiment reading from the EURUSD cooled from last week. This was complemented by underlying price action as the pair finally faltered in its steady rally from the February 8th swing low by retracing 500 points from the euro’s 1.59 high. The SSI now stands at -1.47 compared to -1.40 yesterday and 1.63 last Thursday. Looking back over the historical, weekly SSI readings, positioning extremes have not breached -2.00 since October. This suggests retail traders are slowly coming to accept the euro’s strength; and therefore the trend itself may be flagging. Looking at the details, open interest was modestly above its 1.4% monthly average, though it was also significantly weaker than last week. Long positions are 1.8% fewer than yesterday and 5.7% more than last Thursday. Short positions are 2.6% greater than Wednesday but a sharp 13.5% weaker than last week.