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
Bullish
GBP/USD
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
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
  • Crude oil prices may rise on supply-disruption fears after the outcome of the Iran election, but sentiment from #coronavirus fears may derail Brent’s recovery ahead of the G20 summit. Get your crude #oil market update from @ZabelinDimitri here: https://t.co/83iTphwaWv #OOTT https://t.co/RgQku64XyW
  • The Australian Dollar remains severely weighed down by #coronavirus worries and a lack of domestic data points will probably keep that story in the driving seat. Get you $AUDUSD market update from @DavidCottleFX here: https://t.co/qswUnnXVwR https://t.co/NyZ0iEpILm
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/uOLKRebXB1
  • #DidYouKnow the global trade volumes dropped by close to 10% amid the Great Recession. Want to know your #tradewars history? Get it here: https://t.co/f4loFVzX6w https://t.co/GDTFHvUIf7
  • The spread of #coronavirus promises a global economic hit at a time when the global economy is perhaps especially ill-equipped to deal with one. Growth-correlated assets are vulnerable. Get your market update from @DavidCottleFX here: https://t.co/0If0Jw7c2P https://t.co/mph6z70XeF
US AM Digest: EUR Underperforms on Italian Political Concerns

US AM Digest: EUR Underperforms on Italian Political Concerns

2018-05-16 13:29:00
Justin McQueen, Analyst
Share:

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

US Market Snapshot via IG: DJIA -0.1%, Nasdaq 100 (unch), S&P 500 -0.1%

Major Headlines

  • Italian Assets underperform over Italian political concerns
  • Geopolitical tensions rise as North Korea abruptly cancels South Korean summit

EUR: Investors have had a first glimpse of the concerns that a populist coalition poses with reports stating that the League and 5 Star Party are looking for a EUR 250bln debt relief from the ECB, while also looking at a mechanism by which nations can leave the Euro. Subsequently, the Euro has been the notable underperformer amid the near 20bps of widening between German and Italian yield spreads as Italy’s new government looks to be on a collision course with the EU. In turn, EURUSD made a break through 1.18 with the 1.17 now on the cards, while EURJPY is looking at making a move towards YTD lows (128.94).

USD: As a by-product of the Euro weakness the initial losses in the greenback have been pared and as such the USD-index has posted fresh YTD highs. As markets continue to focus on rate differentials in favour of the USD, particularly after yesterday saw 10yr bond yields rise above taper tantrum highs the currency looks intent on making a move towards 94.00 before the highs seen in December at 94.22.

JPY: Dampened risk sentiment has supported the JPY against its major counterparts. Overnight, North Korea seemingly had a change of heart after abruptly cancelling its South Korean summit and threatening to withdraw from the meeting President Trump is the demands from the US are one sided. USDJPY failing to garner significant buying interest above 110, while the losses in EURJPY are leading the advances in the JPY with pair trading with losses of 0.7%.

DailyFX Economic Calendar: Wednesday, May 16, 2018 – North American Releases

US AM Digest: EUR Underperforms on Italian Political Concerns

DailyFX Webinar Calendar: Wednesday, May 16, 2018

US AM Digest: EUR Underperforms on Italian Political Concerns

IG Client Sentiment Index: EURUSD chart of the day

US AM Digest: EUR Underperforms on Italian Political Concerns

EURUSD: Data shows 55.4% of traders are net-long with the ratio of traders long to short at 1.24 to 1. In fact, traders have remained net-long since Apr 30 when EURUSD traded near 1.208; price has moved 2.1% lower since then. The number of traders net-long is 1.4% higher than yesterday and 2.9% higher from last week, while the number of traders net-short is 7.3% lower than yesterday and 1.5% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests EURUSD prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger EURUSD-bearish contrarian trading bias.

Five Things Traders are Reading

  1. JPY Looking Attractive on Rising Risks Posed by North Korea and Italyby Justin McQueen, Market Analyst
  2. Cryptocurrencies - Prices Edge Lower, Ranges Forming | Webinar” by Nick Cawley, Market Analyst
  3. Trading Outlook for USD, EUR/USD, GBP-Pairs, Gold Price & More” by Paul Robinson, Market Analyst
  4. Political Risk in Italy Returns to Haunt EUR, BTPs and Italian Stocksby Martin Essex, MSTA, Analyst and Editor
  5. EURUSD Bounces May Attract the Bears by Nick Cawley, Market Analyst

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.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.comFollow Justin on Twitter @JMcQueenFX

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

DISCLOSURES

News & Analysis at your fingertips.