News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • So much for that Evergrande recovery. Shares of the troubled Chinese property developer are down approximately -12% today following yesterday's impressive rally (biggest in a year)
  • Retail trading platform Robinhood announces hire of new Chief Compliance Officer amid regulatory scrutiny
  • There is a ridiculous number of scheduled Fed speeches on the docket next week. Powell specifically will be speaking multiple times including at an ECB hosted forum on central banking (which also has a panel with Fed, ECB, BOE and BOJ heads)
  • USD Ascending Triangle, Bullish for Q4 - #DXY chart on @TradingView
  • Credit rating agency Standard & Poor's is due to give its sovereign credit rating update on Germany today ahead of weekend national elections
  • RT @BIS_org: Since the early 1990s, changes in the #MonetaryPolicy stance have affected a rather narrow set of prices – mostly in the servi…
  • Huawei's CFO Meng Wanzhou reached deal with the US Dept of Justice to return her to China - Dow Jones
  • Cleveland Fed President Loretta Mester says: - sees US GDP in 2022 between 3.75 and 4% - Supports tapering in November and concluding over the first half of 2022 - After liftoff, accommodative policy needed for some time
  • Fed Chairman Jerome Powell doesn't comment on the growth forecast or monetary policy in his introductory remarks
  • Kansas City Fed President Esther George says: - The labor market friction is fading barring a resurgence of virus - A 'normal' economy is likely to remain elusive for some time - Asset buying effects complicate the judging rate change plan
EUR/GBP Returns to Post 'Brexit' High, Retail Traders Remain Net Short

EUR/GBP Returns to Post 'Brexit' High, Retail Traders Remain Net Short

Christian Lewis,

Talking Points

  • EURGBP has returned to its post ‘Brexit” high, a level not seen since 2013
  • Historical SSI showing that only twenty percent of traders are long
  • Volume for EUR/GBP has slowly cooled from a post-Brexit swell over the weeks

Keep an eye on short-term trends for the using the Grid Sight Index (GSI) here.

The EUR/GBP has returned to the multi-year highs hit after the EU referendum. The pair, intraday came within pips of the July 6th high at 0.8625 that marks the post “Brexit” high. Prior to that advance, the market hadn’t traded at that level for nearly three years.

Despite the proximity to of such remarkable highs for the pair, retail traders remain positioned for a turn according to the DailyFX Speculative Sentiment Index (SSI). The measure is showing a reading of -3.99 which indicates that for every long EUR/GBP position, there are 3.99 shorts. When this indicator is expressed as the percentage long (as shown below), the reading indicates that only twenty percent of traders are long. According to Senior Strategist David Rodriguez, retail traders frequently attempt to pick tops and bottoms in markets at inappopriate times and thereby can render a contrarian indicator of the SSI.

EUR/GBP Returns to Post 'Brexit' High, Retail Traders Remain Net ShortEUR/GBP Returns to Post 'Brexit' High, Retail Traders Remain Net ShortEUR/GBP Returns to Post 'Brexit' High, Retail Traders Remain Net Short

Advancing further into multi-year highs or retreating may be encouraged by high profile scheduled event risk. In the final day of trading this week, Euro-area and Greek GDP figures are due for the Euro and the UK June construction PMI is scheduled for London hours. In the week ahead, top event risk includes UK inflation (CPI) and employment figures. Eurozone and German investor sentiment surveys are key for the other currency.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.