News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.79%, while traders in EUR/GBP are at opposite extremes with 65.81%.See the summary chart below and full details and charts on FxNews: https://fxnews.org/?/sentiment https://t.co/pPMQB3Sgtf
  • Heads Up:🇲🇽 Economic Activity YoY (JUL) due at 11:00 GMT (15min)Expected: -10%Previous: -13.2%https://fxnews.org/?/economic-calendar#2020-09-25
  • Norges Bank - total liquidity has been unevenly distributed between banks, leading to considerable uncertainty over supply of NOK. Adds that they will offer fully allotted F-Loans at fixed rates with 1 day maturities
  • London put on national Covid watch list amid recent surge in cases
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule:Oil - US Crude: -0.29%Gold: -0.42%Silver: -1.13%View the performance of all markets via https://fxnews.org/?/charts#commodities https://t.co/OTTxCl6GJR
  • Spanish health minister says the government recommends a total lockdown in Madrid
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule:🇳🇿NZD: 0.18%🇦🇺AUD: 0.02%🇯🇵JPY: -0.05%🇨🇭CHF: -0.11%🇪🇺EUR: -0.22%🇬🇧GBP: -0.25%View the performance of all markets via https://fxnews.org/?/charts#currencies https://t.co/37yFAZ530P
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/Fa4sDLIjww
  • 🇫🇷 Unemployment Benefit Claims (AUG)Actual: -171KPrevious: -172.2Khttps://fxnews.org/?/economic-calendar#2020-09-25
  • $GBP https://t.co/Gl9Hkc0nTr
EUR/USD Remains Underpinned as German ZEW Sentiment Improves in September

EUR/USD Remains Underpinned as German ZEW Sentiment Improves in September

2020-09-15 09:32:00
Nick Cawley, Strategist
Share:

ZEW Data and EUR/USD Price, News and Analysis:

  • German Sentiment data improves despite Brexit, COVID fears.
  • EUR/USD now eyes Wednesday’s FOMC meeting for direction.

The latest look at German sentiment showed the EU’s largest member state pushing ahead despite a worrying background. The Euro area economic sentiment reading also beat expectations in September, adding strength to the recent EUR/USD uptick.

ZEW data

FxNews Economic Data and Events Calendar

While the data will be well received by the ECB, one member of the central bank warned today that challenges to growth and inflation remain. ECB executive board member Fabio Panetta was out on the wires earlier today saying the central bank needs to remain vigilant and carefully access incoming data, ‘including exchange rate developments’ in another nod to the importance of the EURUSD exchange rate. Panetta added that while the results achieved by the ECB’s monetary policy measures are ‘remarkable’, they are not ‘fully satisfactory yet’, suggesting that the central bank may have more to do to boost economic growth and inflation.

Starts in:
Live now:
Sep 28
( 10:09 GMT )
Join Day 3 of the FxNews Summit discussing currencies
Key UK Events and Markets for the Week Ahead
Register for webinar
Join now
Webinar has ended

The recent short-term rally in EUR/USD has seen the pair bounce off the 50-day moving average and open the 20-dma today, adding to bullish sentiment for the pair. A series of higher lows adds further credibility to this positive move. Short-term challenges lie ahead with last Thursday’s 1.1920 print the first level of resistance before a handful of previous highs block the way to 1.2000. This level may well spark further commentary from ECB board members. While the ECB said recently that they are not targeting any exchange rate level, commentary suggests that they are looking at it, and the 1.2000 area, carefully due to the negative effects of the exchange rate on inflation. It is looking likely that EUR/USD upside is capped in the short- to medium-term, especially if further ECB rhetoric looks to dampen the exchange rate.

Wednesday’s FOMC meeting nears and commentary from Fed chair Jerome Powell will be closely monitored. With interest rates in the US likely to stay lower for longer, and with any inflation overshoot set to be ignored in favor of growth, the US dollar may edge lower, adding further upside potential to EUR/USD.

EUR/USD Daily Price Chart (March – September 15, 2020)

EUR/USD Remains Underpinned as German ZEW Sentiment Improves in September
EUR/USD BEARISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 2% -2% -1%
Weekly 13% -5% 2%
Learn How to Use Sentiment in Your Trading Strategy
Get My Guide

IG Retail trader data shows 39.66% of traders are net-long with the ratio of traders short to long at 1.52 to 1.The number of traders net-long is 5.73% lower than yesterday and 12.72% lower from last week, while the number of traders net-short is 11.58% higher than yesterday and 5.03% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests EUR/USD prices may continue to rise.

What is your view on EUR/USD – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

FxNews provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES