Momentum is to the downside for the EUR/USD pair ahead of expectations for the US Central Bank (the FED) to rise Interest Rates by another 25 basis points. One also have to take in consideration that the European Central Bank (ECB), is also expected to rise rates.
Besides many other economic indicators we can use, a quick one to judge the market sentiment is the Commitment of Traders Report (COT), to check the Net Positioning differentials of Leverage Money Funds (ex, Hedge Funds) on a specific FX pair.
By calculating the difference net-positioning between both currencies, we can see that a flip to the downside occurred last month (June), and has been growing ever since in favor of the USD vs. the EUR which helps add conviction to our bias.
Commitment of Traders Report (COT) and the Interest hike forecasts.
Besides many other economic indicators we can use, a quick one to judge the market sentiment is the Commitment of Traders Report (COT), to check the Net Positioning differentials of Leverage Money Funds (ex, Hedge Funds) on a specific FX pair.
By calculating the difference net-positioning between both currencies, we can see that a flip to the downside occurred last month (June), and has been growing ever since in favor of the USD vs. the EUR which helps add conviction to our bias.
Commitment of Traders Report (COT) and the Interest hike forecasts.