Market sentiment evaluation:Dealer confidence has fallen for the reason that Federal Reserve shocked markets final week by bein
Market sentiment evaluation:
- Dealer confidence has fallen for the reason that Federal Reserve shocked markets final week by being unexpectedly hawkish.
- That has boosted the US Greenback all spherical and, whereas it’s now off its highs, it continues to look agency in opposition to the Japanese Yen.
- There’s a warning sign although from retail dealer positioning information, that are sending out a contrarian bearish sign on USD/JPY.
Dealer confidence battered
Merchants proceed to want protected havens to riskier property within the wake of final week’s surprisingly hawkish feedback by the Federal Reserve. That has boosted the US Greenback all spherical and, regardless that it has eased from the highs in opposition to many different currencies, it continues to pattern larger in opposition to the Japanese Yen.
At DailyFX, although, we take a contrarian view of retail dealer positioning and meaning the near-term outlook for USD/JPY could possibly be damaging judging by the newest IG consumer sentiment information.
Supply: DailyFX (You’ll be able to click on on the chart for a bigger picture
The retail dealer information present 47.83% of merchants are net-long, with the ratio of merchants brief to lengthy at 1.09 to 1. The variety of merchants net-long is 10.33% larger than yesterday and seven.93% decrease than final week, whereas the variety of merchants net-short is 3.23% larger than yesterday and 12.72% decrease than final week.
Right here at DailyFX, we sometimes take a contrarian view of crowd sentiment, and the very fact merchants are net-short suggests USD/JPY costs might proceed to rise.But merchants are much less net-short than yesterday and in contrast with final week. Current modifications in sentiment warn that the present USD/JPY worth pattern might quickly reverse decrease regardless of the very fact merchants stay net-short.
Sentiment Indicators: Utilizing IG Shopper Sentiment Information
On this webinar, I appeared on the tendencies within the main forex, commodity and inventory markets, on the forward-looking information on the financial calendar this week, on the IG Shopper Sentiment web page on the DailyFX web site, and on the IG Shopper Sentiment reviews that accompany it.
— Written by Martin Essex, Analyst
Be happy to contact me on Twitter @MartinSEssex
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