EUR/USD: Big fundamental day with the ECB
Central bank set to keep rates on hold, retail bias heavy short while CoT heavy long ahead of the event.
EUR/USD Technical analysis, overview, strategies, and levels
It's a big fundamental day for the euro, given the ECB (European Central Bank) will announce its monetary policy decision, whereby expectations are for it to keep its key rates unchanged (as was the case with the Bank of Japan and Bank of Canada yesterday). There's also the summit of EU leaders tomorrow who have yet to iron out a long-term budget and the proposed €750bn coronavirus recovery fund. As if that wouldn't be enough to keep the pair busy, we've also got US retail data, the usually Thursday unemployment claims, manufacturing data, and more Fed speak. The technical overview is volatile in the sense that pivot points are far more likelier to break, with yesterday's move off of its 1st Resistance level holding in line with its previous consolidatory overview that's now showing heavy positive bias.
IG client* and CoT sentiment for EUR/USD
Going into these fundamental events retail traders are holding a heavy short 67% bias, with last Friday's CoT (Commitment of Traders) report a near opposite heavy long 69%.
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.
Be sure to request IG’s Weekly & Daily Market Report when you open an account with IG Dubai and get access to the full information on the FX majors, commodities, indices, and Bitcoin.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets