To get the Asia AM Digest every day , SIGN UP HERE
The Canadian Dollar was one of the biggest movers today, falling broadly against its major counterparts as BOC's Governor Steven Poloz cooled hawkish policy bets. Mr. Poloz said that the central bank "will remain cautious on future rate moves" and that the economy "has room to expand without fueling inflation".
The anti-risk Japanese Yen also underperformed on Tuesday, though it could have been far worse. It was initially undermined by gains in Japanese shares during the Asia trading session. However, a retreat in Wall Street later on Donald Trump's replacement for Secretary of State Rex Tillerson gave the Yen some relief.
Meanwhile the British Pound gained as UK Chancellor Philip Hammond presented his Spring statement. He cut the budget deficit forecast for the 2017/18 year to 2.2 percent of GDP from 2.4 and gave a positive outlook on employment and wage growth.
DailyFX Economic Calendar: Asia Pacific (all times in GMT)
DailyFX Webinar Calendar - CLICK HERE to register (all times in GMT)
IG Client Sen timent Index Chart of the Day: NZD/USD
CLICK HERE to l earn m ore a bout the I G Client Sentiment Index
Retail trader data shows 39.4% of NZD/USD traders are net-long with the ratio of traders short to long at 1.54 to 1. In fact, traders have remained net-short since Jan 05 when NZD / USD traded near 0.70246; price has moved 4.2% higher since then. The number of traders net-long is 3.0% lower than yesterday and 9.6% lower from last week, while the number of traders net-short is 20.4% higher than yesterday and 6.1% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests NZD / USD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger NZD / USD-bullish contrarian trading bias.
Five Things Traders are Reading :
- NZD/USD Technical Analysis: Rebound Struggles Before GDP Data by Ilya Spivak , Sr. Currency Strategist
- Price Action Setups Around a Falling US Dollar After CPI Sell-Off by James Stanley, Currency Strategist
- Crude Oil Price Forecast: US Production Surge Has Spreads Favor Downside by Tyler Yell, CMT, Forex Trading Instructor
- Weekly Technical Perspective on EUR/USD, EUR/JPY and EUR/AUD by Michael Boutros, Currency Strategist
- GBP/USD Breaks Out Amid Waning Bets for Four Fed Rate-Hikes in 2018 by David Song , Currency Analyst
To get the Asia AM Digest every day , sign up here
To get the US AM Digest every day , sign up here
To get both reports daily , sign up here original source
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from IG .