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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.52%, while traders in France 40 are at opposite extremes with 77.95%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/lXYqxrSYOx
  • LIVE NOW! Analyst and Editor @MartinSEssex will discuss the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Commodities Update: As of 11:00, these are your best and worst performers based on the London trading schedule: Silver: 0.47% Gold: 0.38% Oil - US Crude: -1.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ebwfouQlSh
  • Canadian Dollar Weekly Forecast: USD/CAD Reverses Lower, What’s Next? More details in the link below: https://www.dailyfx.com/forex/technical/home/analysis/usd-cad/2020/02/18/Canadian-Dollar-Weekly-Forecast-USDCAD-Reverses-Lower-Whats-Next-MK.html?CHID=9&QPID=917714 https://t.co/EiVBMfDCrE
  • Forex Update: As of 11:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.26% 🇯🇵JPY: 0.15% 🇨🇭CHF: 0.02% 🇨🇦CAD: -0.17% 🇦🇺AUD: -0.41% 🇳🇿NZD: -0.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/FwpqfFNv0d
  • My weekly free webinar on market sentiment is coming up at half past the hour. Do join me if you can. You can sign up here: https://www.dailyfx.com/webinars?ref-author=essex&QPID=917711&CHID=9
  • Indices Update: As of 11:00, these are your best and worst performers based on the London trading schedule: France 40: -0.40% US 500: -0.58% Germany 30: -0.64% Wall Street: -0.66% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/XGUopzAPTp
  • LIVE IN 30 MIN: Analyst and Editor @MartinSEssex will discuss the most important events and themes that have driven market sentiment and will drive it in the days ahead here - https://www.dailyfx.com/webinars/181540619?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • LIVE NOW! Currency Strategist @PaulRobinsonFX will keep you updated with the latest movements and trends during the London session for the FX and CFDs Market here - https://www.dailyfx.com/webinars/243785867?CHID=9&QPID=917720&utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Join @MartinSEssex 's #webinar at 6:30 AM ET/11:30 AM GMT to learn more about trading #sentiment Register here: https://t.co/XUUPRdY06p https://t.co/O3LqxISfjo
Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

2018-05-15 23:00:00
Daniel Dubrovsky, Analyst
Share:

Prior Session Recap – US Dollar Gains and Sentiment Deteriorates

Tuesday’s trading session could have been characterized by two main themes. The first is broad US Dollar strength. The greenback was one of the best performing majors, rising alongside a push higher in local government bond yields as Fed rate hike expectations firmed. Upward revisions in US retail sales seemed to have helped this dynamic. But there seemed to have been another force that may have given the greenback a boost.

A second well-performing FX major was the anti-risk Swiss Franc. It appreciated as the S&P 500 declined about 0.68%, putting in its worst fall in just about two weeks. Meanwhile, sentiment-sensitive currencies like the Australian and New Zealand Dollars depreciated. The US Dollar can at times benefit when risk trends decline across the board given its highly liquid status, and they sure did.

On this front, the two largest world economies are amidst settling trade disputes with both sides having their issues. Ahead of China’s Vice Premier Liu He visiting the country to negotiate, US Ambassador to China Terry Branstad said that the two countries are still “very far apart”. Meanwhile, Chinese fixed asset investment slowed to its lowest since 1999. On the whole, most Asian benchmark indexes also finished the day in the red.

In addition, there is more uncertainty in the markets as they await an Italian majority government outcome that combines the two anti-establishment parties. By the end of Tuesday’s session, Five Star Movement leader Luigi Di Maio said that a deal may be sealed on the next day as he still has some issues to resolve with Matteo Salvini.

A Look Ahead – Yen Could Benefit if Asian Shares Echo Wall Street Declines

With a deterioration in sentiment, the anti-risk Japanese Yen could benefit if Asian shares echo the declines seen on Wall Street. Meanwhile, the currency may not get much support from local GDP figures. Data out of Japan has been tending to outperform relative to economists’ expectations. Even if we get more of the same in the data, it will most likely have limited implications for Bank of Japan monetary policy expectations.

DailyFX Economic Calendar: Asia Pacific (all times in GMT)

Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

DailyFX Webinar CalendarCLICK HERE to register (all times in GMT)

Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

IG Client Sentiment Index Chart of the Day: USD/JPY

Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

CLICK HERE to learn more about the IG Client Sentiment Index

Retail trader data shows 52.3% of USD/JPY traders are net-long with the ratio of traders long to short at 1.1 to 1. In fact, traders have remained net-long since Dec 29 when USD/JPY traded near 112.467; price has moved 1.9% lower since then. The number of traders net-long is 8.1% lower than yesterday and 6.2% lower from last week, while the number of traders net-short is 3.8% higher than yesterday and 0.5% lower from last week.

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

Asia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP BeatAsia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP BeatAsia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP BeatAsia AM Digest: Yen May Gain if Sentiment Falls. Not on GDP Beat

Five Things Traders are Reading:

  1. Gold Price Drops as US Treasury Yields Push Higher by Christopher Vecchio, Sr. Currency Strategist
  2. Stagnant Australia Wage Price Index (WPI) to Fuel AUD/USD Weakness by David Song, Currency Analyst
  3. US Dollar Index (DXY) Forecast: Recent Strength A Long-Term Reversion?by Tyler Yell, Forex Trading Instructor
  4. GBP/USD Range Snaps, RSI Remains Extreme Ahead of BoE, FOMC Rhetoric by David Song, Currency Analyst
  5. USD/JPY Rate Forecast: US Yields Pave the Way for Move Above 110by Tyler Yell, Forex Trading Instructor

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

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

DISCLOSURES

News & Analysis at your fingertips.