EUR/USD: US dollar underperforms again
€750bn stimulus package for Germany, $2tn US stimulus package passes the Senate.
EUR/USD Technical analysis, overview, strategies, and levels
It’s been busy on the fiscal policy front, with the German government agreeing to a €750bn stimulus package, and where the US Senate passed its $2tn stimulus package with the House set to vote on it tomorrow. In other data, German IFO business sentiment figures were worse than expected, and GfK’s consumer climate figure is up next. However, the real movement for all USD pairs will likely be from US unemployment claims, expected to show a roughly 1.6m increase (it’s usually 200-300K) but where it could easily be double those figures. Conformist breakout strategies outperformed yesterday with a breach of yesterday’s 1st Resistance level, and significant economic data today and a G20 meeting that could remain the case.
IG client* and CoT sentiment for EUR/USD
In sentiment, retail longs have been unwinding on EUR/USD’s price increase, the bias dropping 7% to a majority long 56%, identical to that of larger speculative traders as per the latest CoT (Commitment of Traders) report.
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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