Asia AM Digest: Euro Plunges as Italian Election Looms on the Horizon
Markets

Asia AM Digest: Euro Plunges as Italian Election Looms on the Horizon

DailyFX.com -

To get the Asia AM Digest every day , SIGN UP HERE

The Euro traded broadly lower yesterday, in a move that the newswires attributed to anxiety ahead of the March 4 general election in Italy. DailyFX Sr. Currency Strategist Ilya Spivak has argued that the single currency may top the list of major trend reversals in 2018 following stellar performance last year.

The New Zealand Dollar rose, supported by a pickup in local bond yields that may reflect a hawkish shift in RBNZ policy bets. The Australian Dollar fell however, in a move that might have been corrective of recent gains after CFTC data put speculative futures positioning at its most net-short in 11 months.

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: AUD/USD

CLICK HERE to l earn m ore a bout the I G Client Sentiment Index

Retail trader data shows 37.5% of traders are net-long AUD / USD , with the ratio of traders short to long at 1.66 to 1. In fact, traders have remained net-short since Dec 19 when AUD / USD traded near 0.76457; price has moved 2.8% higher since then. The number of traders net-long is 9.8% lower than yesterday and 6.0% lower from last week, while the number of traders net-short is 5.9% lower than yesterday and 2.8% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUD / 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 AUD / USD -bullish contrarian trading bias.

Five Things Traders are Reading

  1. A Weekly Technical Perspective on DXY, GBP/USD, AUD/USD by Michael Boutros, Currency Strategist
  2. GBP/USD Technical Analysis: Strong 2017 Close Keeps Door Open for Sterling Strength by James Stanley, Currency Strategist
  3. UK Markets Alert for ECB Minutes, Fed Speakers by Nick Cawley, Analyst
  4. Weekly Technical Outlook- USD Crosses Grind into 2018 Open by Michael Boutros, Currency Strategist
  5. EUR/USD Technical Analysis: Large Double Top Taking Shape? by Ilya Spivak, Sr. Currency Strategist

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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos