DailyFX US AM Digest: US Dollar Gaps Open Higher and Stays There

Receive the DailyFX US AM Digest in your inbox every day before US equity markets open - signup here

FX markets are starting the week on a quieter note than they ended the last week on, perhaps a day of relaxation before the onslaught of significant event risk over the coming days. Both the UK and the US will see fresh rounds of inflation data this week, while five central banks – the Federal Reserve, the Swiss National Bank, the Bank of England, the European Central Bank, and Banxico – are meeting between Wednesday and Friday. Volatility, which has been trending lower not only in FX markets but bond and equity markets too in 2017, should see an awakening in the days ahead.

DailyFX Economic Calendar: Monday, December 11, 2017 – North American Releases

A busy week on the calendar starts off Monday in North America on the quiet side. There are zero Canadian or Mexican data releases or events, and there is only one low rated American data release (the other four are Treasury bill and note sales). In lieu of market-moving information from the calendar, traders would be wise to follow the news wire for further developments around the US tax reform bill and the Brexit negotiations.

DailyFX Webinar Calendar: Monday, December 11, 2017

IG Client Sentiment Index Chart of the Day: EURUSD

Learn more about the IG Client Sentiment Index on the DailyFX Sentiment page

EURUSD: Retail trader data shows 44.6% of traders are net-long with the ratio of traders short to long at 1.24 to 1. The number of traders net-long is 9.7% higher than yesterday and 26.9% higher from last week, while the number of traders net-short is 8.2% higher than yesterday and 7.5% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EURUSD prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current EURUSD price trend may soon reverse lower despite the fact traders remain net-short.

Five Things Traders are Reading

1. “FX Markets Have Busy Week with UK & US CPI, Plus BOE, ECB, & FOMC” by Christopher Vecchio, CFA, Senior Currency Strategist
2. “CoT Shows Massive Unwind in Gold & Silver; Euro Bulls Unrelenting” by Paul Robinson, Market Analyst
3. “GBP/USD, EUR/USD, NZD/USD Lead Majors in Expected Volatility This Week” by Paul Robinson, Market Analyst
4. “Bitcoin Price Volatility Halts Futures Trading” by Nick Cawley, Analyst
5. “Optimism over ECB’s Growth and Inflation Forecasts Could Give Euro a Lift” by Christopher Vecchio, CFA, Senior Currency Strategist

The DailyFX US AM Digest is published every day before the US cash equity open - you can SIGNUP HERE to receive this report in your inbox every day.

The DailyFX Asia AM Digest is published every day before the Tokyo cash equity open - you can SIGNUP HERE to receive that report in your inbox every day.

If you're interested in receiving both reports each day, you can SIGNUP HERE.