Euro Forecast to Recover Against Dollar on Shift in Forex Sentiment
Posted 06-10-2010 at 03:30 PM by DailyFX
EURUSD – Euro Forecast to Recover Against US Dollar
GBPUSD – British Pound Outlook Bullish on Sentiment
USDJPY – Japanese Yen Expected to Decline against USD
USDCHF – Swiss Franc May Strengthen against Dollar
USDCAD – Canadian Dollar Forecast Calls for Gains
GBPJPY – British Pound Forecast Remains Bullish Against Yen
Forex trading crowds have suddenly shifted towards buying the US Dollar against the Euro, British Pound, Swiss Franc, and Canadian Dollar—giving contrarian signal to go short the previously high-flying US currency. The shift has been especially pronounced in the EURUSD; the number of traders short jumped by an impressive 39% since just a week ago. Given that crowds had been steadily net-long the Euro against the US Dollar amidst sharp declines, the sudden shift suggests we could see a noteworthy short-term bounce. The noteworthy exception to calls for US Dollar weakness is on the USDJPY pair, where a dramatic shift towards selling gives contrarian signal to buy the USD against the Japanese Yen. Watch for noteworthy corrections across the board as sentiment shifts rapidly across forex trading markets.
GBPUSD – British Pound Outlook Bullish on Sentiment
USDJPY – Japanese Yen Expected to Decline against USD
USDCHF – Swiss Franc May Strengthen against Dollar
USDCAD – Canadian Dollar Forecast Calls for Gains
GBPJPY – British Pound Forecast Remains Bullish Against Yen
Forex trading crowds have suddenly shifted towards buying the US Dollar against the Euro, British Pound, Swiss Franc, and Canadian Dollar—giving contrarian signal to go short the previously high-flying US currency. The shift has been especially pronounced in the EURUSD; the number of traders short jumped by an impressive 39% since just a week ago. Given that crowds had been steadily net-long the Euro against the US Dollar amidst sharp declines, the sudden shift suggests we could see a noteworthy short-term bounce. The noteworthy exception to calls for US Dollar weakness is on the USDJPY pair, where a dramatic shift towards selling gives contrarian signal to buy the USD against the Japanese Yen. Watch for noteworthy corrections across the board as sentiment shifts rapidly across forex trading markets.
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