News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here: https://t.co/1mnOXUuBpt https://t.co/kloJCFmJty
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/wwxKQFibW6
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am EST on DailyFX! A look at the levels heading into #FOMC - https://t.co/lxd5fZnn4H
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/Nx6AHxZksK
  • Markets Week Ahead: Euro, Dollar, Gold, S&P 500, Earnings, Inflation Check out @RichDvorakFX's latest market recap and preview plus all the weekly forecasts from the @DailyFXTeam at the link below! Link to Analysis - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/07/25/markets-week-ahead-euro-dollar-gold-sp500-fed-earnings-inflation.html $EURUSD $SPX #Trading
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/xKkBwu951j
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/MYWlQphqtb
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/paOy1oQmn3
  • US indices have a packed week ahead with earnings from the major technology names, US GDP data due and an FOMC rate decision. With so much on the docket the potential for volatility is heightened. Get your stock market forecast from @PeterHanksFX here: https://t.co/CH4WoStHvu
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/otJwnuR7qe
EUR & GBP Outperform as Dollar Extends on Losses - US Market Open

EUR & GBP Outperform as Dollar Extends on Losses - US Market Open

Justin McQueen, Analyst

MARKET DEVELOPMENT – DXY DECLINES EXTEND WHILE GBP HITS 6-WEEK HIGH

USD: Despite the escalation in trade war rhetoric from the Trump administration following reports that that the US are looking to impose $200bln worth of tariffs on China as soon as today. The USD is surprisingly underperforming against its major counterparts, while the uptick in US yields with the 10yr at the highest in 4-months has also failed to exert any real buying pressure in the USD-index. However, with regard to escalating trade tensions, the US is to impose tariffs at 10% as opposed to 25%, consequently taking some of the sting out of the latest measures. Elsewhere, the latest CFTC data showed that the crowded USD long trade continued to recede with speculators reducing around $1.5bln.

GBP: The Pound continues to find support from the positive sentiment regarding Brexit, which in turn has taken GBPUSD back above 1.31 to reach a fresh 6-week high at 1.3150. CFTC speculative positioning showed another reduction GBP shorts, however, short position remains very large and as such suggest that there is scope for further upside.

EUR: The softer Dollar has helped lift the Euro this morning, however, sizeable option expiries at 1.17 has contained price action for now. Headline inflation had been confirmed at 2%, while the ECB’s preferred measure of inflation (core), remained at 1%, which is still some way off the ECB’s target. Tightening US-German spreads have also helped buoy the Euro this morning with the 10yr bond spread narrowing 1.3bps.

DailyFX Economic Calendar: Monday, September 17, 2018 – North American Releases

EUR & GBP Outperform as Dollar Extends on Losses - US Market Open

DailyFX Webinar Calendar: Monday, September 17, 2018

EUR & GBP Outperform as Dollar Extends on Losses - US Market Open

IG Client Sentiment Index: GBPUSD Chart of the Day

EUR & GBP Outperform as Dollar Extends on Losses - US Market Open

GBPUSD: Data shows 65.9% of traders are net-long with the ratio of traders long to short at 1.94 to 1. In fact, traders have remained net-long since Apr 20 when GBPUSD traded near 1.40768; price has moved 7.2% lower since then. The number of traders net-long is 3.2% lower than yesterday and 17.3% lower from last week, while the number of traders net-short is 23.0% lower than yesterday and 13.5% 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 more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.

Five Things Traders are Reading

  1. USD Bears Hit Back: US Dollar Drops from Resistance at Prior SupportbyJames Stanley , Currency Strategist
  2. CoT Sentiment Update for USD, Euro, Pound, Yen, Gold & Others" by Paul Robinson, Market Analyst
  3. UK Week Ahead: Sterling Firm Ahead of Brexit Talks | Webinarby Nick Cawley, Market Analyst
  4. FTSE 100 Weekly Look Ahead: US-China Trade Wars Renew FTSE Selling” by Justin McQueen, Market Analyst
  5. US Dollar, Gold Price Remain Rangebound” by Nick Cawley, Market Analyst

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

mailto:Justin.mcqueen@ig.com

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

DISCLOSURES