Bullish Sign for EUR/GBP as Brief Positions Bounce: Market Sentiment Webinar

Market sentiment evaluation:

  • Markets are in moderately good type forward of the financial coverage selections this week by the Federal Reserve and the Financial institution of England, in addition to Friday’s US non-farm payrolls information and a gathering of OPEC+.
  • Within the meantime, IG consumer sentiment information are sending out a bullish contrarian buying and selling sign for EUR/GBP.

Dealer confidence excessive forward of coverage conferences

Dealer confidence is excessive, with US inventory markets not removed from their report highs forward of Wednesday’s financial coverage resolution by the Federal Reserve, Thursday’s announcement by the Financial institution of England and Friday’s US non-farm payrolls information.

That optimism has stored the primary US inventory market indexes close to to their report highs though volumes will seemingly be low till the Fed and the BoE conferences have ended.

Within the meantime, IG consumer positioning information are sending out a bullish sign for EUR/GBP.

EUR/GBP Worth Chart, Every day Timeframe (April 6 – November 2, 2021)

Latest EUR/GBP price chart.

Chart by IG (You possibly can click on on it for a bigger picture)

The retail dealer information present 67.77% of merchants are net-long EUR/GBP, with the ratio of merchants lengthy to brief at 2.10 to 1. The variety of merchants net-long is 11.96% decrease than yesterday and 28.21% decrease than final week, whereas the variety of merchants net-short is 19.26% increased than yesterday and 38.20% increased than final week.

Right here at DailyFX, we sometimes take a contrarian view to crowd sentiment, and the very fact merchants are net-long suggests EUR/GBP costs could proceed to fall.But merchants are much less net-long than yesterday and in contrast with final week. Latest adjustments in sentiment warn that the EUR/GBP value could quickly transfer increased regardless of the very fact merchants stay net-long.

EUR/USD Trading Basics: What Is EUR/USD And Why Trade It?

On this webinar, I appeared on the tendencies within the main foreign money, commodity and inventory markets, on the forward-looking information on the economic calendar this week, on the IG Client Sentiment page on the DailyFX website, and on the IG Client Sentiment reports that accompany it.

— Written by Martin Essex, Analyst

Be at liberty to contact me on Twitter @MartinSEssex

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