DailyFX US AM Digest: British Pound Extends Win Streak
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The British Pound rally across the board has continued on Thursday, following the range breakout higher in GBP/USD yesterday. While pairs like EUR/GBP and GBP/JPY are still in recent consolidations, potential is clearly gathering for breakout opportunities (EUR/GBP: range break lower; GBP/JPY: symmetrical triangle break higher). Meanwhile, the Euro failed to hold onto earlier gains after the November Euro-Zone CPI report missed expectations. Overall, the US Dollar rally may be entering day four, but gains have started to slow; near-term price action seems to be hanging on developments around tax reform legislation in Washington, D.C.
DailyFX Economic Calendar: Thursday, November 30, 2017 – North American Releases
Once again, the majority of significant North American economic data is in the rearview mirror for today. Earlier, the October US Personal Income and Personal Spending reports, as well as the October US PCE report, provided only a minor boost to the greenback. Overall, the inflation figures won’t do much to shake off concerns that disinflation is setting in. Later, the Fed’s Quarles and Kaplan will be speaking.
DailyFX Webinar Calendar: Thursday, November 30, 2017
IG Client Sentiment Index Chart of the Day: GBPUSD
Learn more about the IG Client Sentiment Index on the DailyFX Sentiment page
GBPUSD: Retail trader data shows 41.3% of traders are net-long with the ratio of traders short to long at 1.42 to 1. In fact, traders have remained net-short since Nov 21 when GBPUSD traded near 1.3314; price has moved 1.1% higher since then. The number of traders net-long is 0.9% higher than yesterday and 0.1% lower from last week, while the number of traders net-short is 4.9% higher than yesterday and 4.9% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPUSD prices may continue to rise. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
Five Things Traders are Reading
- “DXY Tests November Downtrend; GBP Bullish Posture Improves” by Christopher Vecchio, CFA, Senior Currency Strategist
- “EUR/USD Weakens on Inflation No-Show” by Nick Cawley, Analyst
- “Bitcoin – ’Rickshaw Man’ Warns of a Big Reversal” by Paul Robinson, Market Analyst
- “FTSE Technical Analysis: Wild Turnabout Gives Shorts the Upper Hand” by Paul Robinson, Market Analyst
- “Crude Oil Prices May Struggle Even as OPEC, Allies Extend Cuts” by Ilya Spivak, Senior Currency Strategist
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