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This week holds a number of events which will be taken into account by currency traders. Tomorrow afternoon we will see the latest US trade balance figures, before Thursday’s US bank holiday to celebrate Independence Day. We also have the ever-volatile US non-farm payroll figures out on Friday; however, since these reflect the change in the previous month’s employment and are correlated so quickly, they do have the tendency to initially be less accurate and amended later in the month.
An already unclear picture will potentially become even more confusing with all of this in the pipeline, and it is quite likely that we will see volumes drift lower as traders err on the side of caution and reduce exposure.
Looking at IG’s client sentiment indicator we can see that clients are currently 58% short of EUR/USD. This could well change over the coming days.