Retail Crowd Sentiment Suggests Further Gains for U.S. Dollar
- EURUSD – Forex Traders Continue to Bet on Euro Losses
- GBPUSD – British Pound Forecast Turns Increasingly Bearish
- USDJPY – Yen Poised to Continue Rally, Though Traders Pare Optimism
- USDCHF – Swiss Franc Forecast Slightly Less Positive
- USDCAD – Loonie Outlook Flips, Forecast to Fall against Dollar
- GBPJPY – British Pound Sentiment Extreme Suggests Further Losses
Forex trading crowd sentiment has favored U.S. Dollar (ticker: USDOLLAR) gains against the Euro and Sterling for some time, but now with the move to safer assets rapidly accelerating, significant shifts suggests that the EUR/USD may continue to fall as the Dollar rally continues across the board.
Given the contrarian nature of the Speculative Sentiment Index, the signal flashing is for further U.S. Dollar and Yen strength across the major currencies. The negative correlation the U.S. Dollar has with the Dow Jones Industrial Average serves as a confirmation for this bias, as equity markets across the globe have sold off rapidly and look exceptionally fragile going forward.
Written by Christopher Vecchio, Currency Analyst
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