US AM Digest: British Pound, Euro Start Week on Tops Thanks to Brexit, ECB
Date
3/20/2018 2:08:29 AM
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The US Dollar has started off the week on softer footing but for no reason of its own doing: the British Pound has rallied on the back of headlines that a two-year Brexit transition deal has been agreed upon by the EU and the UK; and the Euro is up on the back of headlines that the ECB is reconsidering their easing path. The British Pound should stay in the headlines over the next few days, with the February UK CPI report out tomorrow and the Bank of England policy meeting on Thursday. While the BOE isn't going to raise rates, it's expected that the Monetary Policy Committee will signal a greater willingness to raise rates when the next Quarterly Inflation Report is due out in May. Elsewhere, trade tensions remain high, leaving the commodity currencies on edge on approach to Friday's arbitrary deadline set by the US Trump administration.
: Monday, March 19, 2018 North American Releases
Monday is easily the lightest day on the economic calendar this week, with no ‘medium' or ‘high' importance data releases on the North American docket today. The data flow should intensify as the week marches forward, with the March FOMC meeting on Wednesday and the February Canadian CPI report on Friday.
: Monday, March 19, 2018
IG Client Sentiment Index Chart of the Day: GBPUSD
GBPUSD: Retail trader data shows 47.0% of traders are net-long with the ratio of traders short to long at 1.13 to 1. The number of traders net-long is 8.4% higher than yesterday and 4.2% lower from last week, while the number of traders net-short is 3.7% higher than yesterday and 13.5% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests GBPUSD prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed GBPUSD trading bias.
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by Nick Cawley, Analyst by Martin Essex, MSTA, Analyst and Editor by Paul Robinson, Market Analyst by Nick Cawley, Analyst by Paul Robinson, Market Analyst The DailyFX US AM Digest is published every day before the US cash equity open - you can to receive this report in your inbox every day.
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