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Title: EUR/USD eyes consecutive fourth monthly loss as options market holds bearish bias

September 30, 2022 01:12 AM ET

By: AnalysisWatch

The EUR/USD is hovering around the intraday low of 0.9800 and is on track to post its first weekly gain in three weeks. Still, the major currency pair remains in a four-month downtrend until European trading on Friday.

However, the market's recession fears and the central bank's aggressiveness may have favored the medium-term bears. However, cautious sentiment ahead of key U.S./EU inflation data and quarter-end positioning is driving the recent gains.

It should be noted that the one-month Risk Reversal (RR) for the euro, a measure of the ratio of calls to puts, is at its highest daily value in two weeks with an RR value of 0.165, according to the latest data from Reuters. However, the weekly value is still in the red, showing the second negative value of-0.290 at press time.

The monthly and quarterly RR figures are also in favor of EUR/USD sellers at -0.370 and -0.170, respectively, according to Reuters.

Given the overall bearish trend in the options market, EUR/USD rates are likely to fall from their recent corrective trend after the 20-year low.

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