US AM Digest: US Dollar (DXY Index) Trades within Tuesday's High-Low Range
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The US Dollar is trading slightly higher at the start of the US cash equity open on Thursday, although price movement has been fairly limited. Indeed, the ranges carved out by the DXY Index on Wednesday and thus far today have not yet exceeded the high or low established on Tuesday, with traders brushing off any economic data releases as attention remains on the shakeup in White House personnel – Larry Kudlow is the new chairman of the National Economic Council – and the ongoing push for more tariffs on commodities and goods from China. Elsewhere, traders are beginning to turn their attention to next week’s FOMC meeting, the first chaired by Jerome Powell, where it is widely expected rates will be raised by 25-bps.
DailyFX Economic Calendar: Thursday, March 15, 2018 – North American Releases
The bulk of the North American calendar is in the rearview mirror for today, although there are still a smattering of releases due up over the next few hours. Of note, however, will be the Net Long-term and Total TIC Flows for January, a report which examines how much money foreigners are pouring in – or taking out – of US Treasury markets.
DailyFX Webinar Calendar: Thursday, March 15, 2018
IG Client Sentiment Index Chart of the Day: USDJPY
USDJPY: Retail trader data shows 69.8% of traders are net-long with the ratio of traders long to short at 2.31 to 1. In fact, traders have remained net-long since Dec 29 when USDJPY traded near 112.595; price has moved 5.8% lower since then. The number of traders net-long is 3.0% higher than yesterday and 8.2% higher from last week, while the number of traders net-short is 10.7% higher than yesterday and 9.3% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
Learn more about the IG Client Sentiment Index on the DailyFX Sentiment page
Five Things Traders are Reading
- “US Dollar Hampered by Downswing in Q1 Growth Expectations” by Christopher Vecchio, CFA, Senior Currency Strategist
- “Gold & Silver Technical Outlook: Prices Winding Up for a Move” by Paul Robinson, Market Analyst
- “Sterling (GBP) Stuck Between Russia And Brexit” by Nick Cawley, Analyst
- “Bitcoin, Ripple, Litecoin Price Meltdown; Are Markets Oversold?” by Nick Cawley, Analyst
- “Asian Stocks Recover Losses After US Session Jitters, SNB Due” by Daniel Dubrovsky,
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