A noteworthy shift in US Dollar trader sentiment leaves us in favor of Euro/US Dollar gains, marking a noteworthy change from our previously USD-bullish bias. The Greenback likewise stands to lose further against currencies such as the Japanese Yen, Swiss Franc, and Canadian Dollar. Yet a build in GBP/USD long orders gives us contrarian signal that it may in fact strengthen against the recently-weak British Pound. Traders have likewise built up strong short interest in the Japanese Yen, and we remain firmly bullish (bearish USDJPY and GBPJPY) until further notice.
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