Huge Week for Forex Markets, but Even Bigger Moves Coming Soon
What a difference a week makes. Retail FX traders went from buying aggressively into Dollar weakness to being universally short USD across the board. We like buying for that same reason.
View individual currency sections:
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Last week we wrote that traders remained short Euro, British Pound, and Japanese Yen against the downtrodden Greenback, but a substantive shift in sentiment and market conditions has effectively reversed our SSI-based forecasts.
And though we’ve previously spoken enthusiastically in favor of further Japanese Yen weakness (EURJPY, USDJPY strength), we might soon sing a different tune as warning signs become too difficult to ignore.
It’s been a big week for markets and key swings in retail forex sentiment warn even bigger moves are ahead.
(See the full SSI charts in the links above)
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.