EUR/USD: Euro takes a breather
Technical overview remains volatile ahead of tomorrow’s NFP.
EUR/USD Technical analysis, overview, strategies, and levels
Following the aftershock from Tuesday's surprise US Federal Reserve (Fed) 0.5% rate cut decision, market movement witnessed an undoing of Tuesday's gains with EUR/USD’s price dropping as the euro underperformed. Markets are majority pricing in a rate cut out of ECB next week. Of the data available, services PMIs (Purchasing Managers Index) out of the Eurozone were slightly below expectations but posting above 50 figures, while out of the US, ISM's closely watched estimate came in at a much healthier 57.3. A dearth of Eurozone data today and relatively low-impacting data out of the US later on will mean risk and USD-related flows will be a more crucial aspect for financial markets ahead of tomorrow's fundamental Non-Farm Payrolls (NFP) event.
IG client* and CoT sentiment for EUR/USD
Ahead of the event both retail and CoT (Commitment of Traders) speculators are holding a majority short bias.
EUR/USD Chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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