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
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • #JapaneseYen remains very fundamentally driven. #Brexit has for the moment replaced #USChinaTrade as the key risk appetite trip switch. However #USDJPY technicals are interesting too, with the pair at the top of a band it hasn't liked to be above lately. https://www.dailyfx.com/forex/technical/home/analysis/usd-jpy/2019/10/21/Japanese-Yen-Holds-Dollar-Bulls-Near-Top-of-Key-Trading-Band-.html?utm_source=Twitter&utm_medium=Cottle&utm_campaign=twr
  • LIVE IN 30 MIN: Join Currency Analyst @ZabelinDimitri as he previews the upcoming week’s main political themes and discusses their impact on the financial markets. Register here: https://www.dailyfx.com/webinars/146770987?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • RT @scheplick: This week, there were massive protests in: Hong Kong Chile Lebanon Ecuador Haiti Indonesia Spain Libya Iraq France Englan…
  • RT @next_china: China Banks Unexpectedly Keep Loan Prime Rate Steady in October https://t.co/gEsDu1ADAH
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.03% Gold: 0.00% Oil - US Crude: -0.06% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rwBMrPXH58
  • #BRL, #COP and the #CLP are expected to be the most active Latin American currencies vs USD with 1-week implied volatilities at 13.40, 10.47 and 9.34 respectively
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.21% 🇦🇺AUD: 0.06% 🇨🇦CAD: -0.05% 🇪🇺EUR: -0.11% 🇨🇭CHF: -0.12% 🇬🇧GBP: -0.39% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/cJ8uz0usDy
  • How will #Brexit affect the US? Economist @julianHjessop gives his take, only on Global Markets Decoded #podcast. Missed the episode? Get your read here: https://t.co/9SFO9wikRI https://t.co/zQ4Bijk6Up
  • The $USD might be in the process of reversing its two-year uptrend, but technical positioning cautions eager sellers against over-committing. Get your $DXY market update from @IlyaSpivak here: https://t.co/RrifbHfNut https://t.co/VMPintsxrU
  • LIVE NOW: Join Senior Strategist @IlyaSpivak as he discusses the outlook for the financial markets in the week ahead! Register here: https://www.dailyfx.com/webinars/889679267?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

2018-06-21 13:38:00
Justin McQueen, Analyst
Share:

US Market Snapshot via IG: DJIA -0.4%, Nasdaq 100 0.1%, S&P 500 -0.2%

Major Headlines

  • Bank of England Keep Bank Rate at 0.5%, Vote split 6-3 (Prev. 7-2)
  • Italy appoint two Eurosceptics to head finance committee
  • Saudi Arabia sees a 1mln bpd oil increase as a reasonable target.

GBP:Sterling bulls have been provided with some hope following the Bank of England rate decision, after Chief Economist Haldane joined McCafferty and Saunders in voting for a hike. As such, the surprise 6-3 vote split took GBP to fresh intra-day highs with August rate hike bets rising to 45% from 33%.

EUR: Italian political uncertainty returning after Italy appoints two Eurosceptics to head the finance committee, consequently, the Euro is off best levels of the day, falling the underperformance in Italian assets. Although, it is not clear how much influence their roles will have on dictating economic policy, one thing is clear and it’s their critical view on the Euro.

Crude Oil: Brent and WTI crude futures are trading in the red as OPEC near deal to increase output. Reports have suggested that the Saudi Energy Minister views a 1mln bpd oil increase as a good target to work with, while OPEC sources have also indicated that Iran may be open to an agreement. Subsequently, this is likely to keep oil prices on the back foot.

DailyFX Economic Calendar: Thursday, June 21, 2018 – North American Releases

US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

DailyWebinar Calendar: Thursday, June 21, 2018

US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

IG Client Sentiment Index: GBPUSD Chart of the Day

US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

GBPUSD: Data shows 72.5% of traders are net-long with the ratio of traders long to short at 2.63 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.41803; price has moved 7.1% lower since then. The number of traders net-long is 2.0% higher than yesterday and 8.5% higher from last week, while the number of traders net-short is 2.4% higher than yesterday and 20.6% lower from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPUSD 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 GBPUSD trading bias.

US AM Digest: GBP Surges on Hawkish BoE, EUR Dips as Italy Appoints Eurosceptics

USDCAD: Data shows 27.7% of traders are net-long with the ratio of traders short to long at 2.61 to 1. In fact, traders have remained net-short since May 22 when USDCAD traded near 1.28776; price has moved 3.1% higher since then. The number of traders net-long is 2.6% higher than yesterday and 6.7% lower from last week, while the number of traders net-short is 1.6% lower than yesterday and 39.1% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDCAD prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDCAD trading bias

Five Things Traders are Reading

  1. Central Bank Weekly: British Pound Carves Out Reversal Candles after BOEbyChristopher Vecchio, CFA, Sr. Currency Strategist
  2. Sterling Bulls Offered Hope as Bank of England Raises August Rate Hike Bets” by Justin McQueen, Market Analyst
  3. Gold & Silver Price Forecast – Extended but at Risk of More Lossesby Paul Robinson, Market Analyst
  4. EURUSD and Italian Assets Fall as Italian Political Uncertainty Returnsby Justin McQueen, Market Analyst
  5. Oil Price Analysis: Downtrend Intact Ahead of OPEC” by Nick Cawley, Market Analyst

--- 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.