Market Positioning Data Sending Bearish Signals for US Dollar

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Market sentiment analysis:

  • IG client sentiment data are sending out bearish signals for the US Dollar against the Euro, the Japanese Yen, the Australian Dollar and the New Zealand Dollar.
  • The signals come ahead of Thursday’s much-anticipated US inflation data and the conclusion of the ECB meeting on Eurozone monetary policy.

Trader positioning data point to weak USD

IG client sentiment data, which track the positioning of traders using the company’s platforms, are suggesting a weaker US Dollar against several other currencies. At DailyFX we take a contrarian view of retail trader positioning and the current signal are bullish EUR/USD, AUD/USD and NZD/USD as well as bearish USD/JPY.

These signals come as stock markets remain generally firm worldwide ahead of Thursday’s two key events: the release of US inflation data and the monetary policy announcement by the European Central Bank.

IG Client Sentiment Data

Source: DailyFX (You can click on it for a larger image)

In this webinar, I looked at the trends in the major currency, commodity and stock markets, at the forward-looking data on the economic calendar this week, at the IG Client Sentiment page on the DailyFX website, and at the IG Client Sentiment reports that accompany it.

— Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

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