US Dollar Rebounds Ahead of FOMC
- US Dollar Rebounds Ahead of FOMC
- Central Banks Lead This Weeks Economic Calendar
- EUR/USD Sentiment Remains Extreme; IGCS Remain at -2.28
In this weeks webinar the US Dollar remains in focus ahead of Wednesday’s highly anticipated FOMC rate decision. This is just one of many central bank events this week that may affect the price action for US Dollar based pairs including the GBP/USD, EUR/USD, and USD/JPY. Technically the US Dollar is little changed for Monday’s trading but the DXY remains above its 10 day EMA (exponential moving average) at 97.12. If prices close above this point, it will mark the third session that the DXY has closed above this average for June. Knowing this, traders should continue to monitor the 10 day EMA ahead of this week's heavily weighted economic calendar.
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Daily DXY Chart with Averages
(Chart Prepared by Walker England)
Sentiment for the EUR/USD and GBP/USD are also on the move. IG Client Sentiment for the EUR/USD stands out, as it continues to read at extremes. Currently IG Client Sentiment reads at -2.28 for the EUR/USD with 70% of traders short the currency. Alternativley, sentiment for the GBP/USD has flipped positive. Sentiment now reads at +1.29 for the pair, with 57% of traders net-long the GBP/USD.
Lastly, traders should continue to monitor sentiment figures for the USD/JPY. IG Client Sentiment for the USD/JPY stands at +1.96 with 66% of traders net-long the currency pair. This value remains the same as last Friday’s reading, howevder if prices continue to decline traders should watch for this value to move to a positive extreme of +2.0 or more.
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--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.